Scale 1 represents the short-run production for a repre- sentative firm. Explain what is currently happening with firms in this industry in the short run and what will likel happen in the long run. Dollars ($) Scale 1 SRAC SRMC LRAC

Return to Figure 7.7. What is the marginal gain in output from increasing the number of batters from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns? Figure 7.7 How output Affects Total costs

How does fixed cost affect marginal cost? Why is this relationship important?

What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?

The following graph shows the short-run average total cost curves and the long-run average total cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average total cost curve (LRATC); for example, Qi marks the point of tangency between ATC1 and LRATC. The orange point on ATC, indicates the firm's current output level in the short run (Q2). ATC, ATC5 ATCA LRATC ATC, ATC, Q, Q5 OUTPUT COST PER UNIT

© Macmillan Learning The figure depicts the long-run average total cost curve for Magma Motors. If this firm is currently producing 11,000 cars per year, what does it experience if it increases output by 1,000 cars? Figure: Long-Run Average Total Cost Curve for Magma Motors Cost (per car) $5,000 4,000 0 Long-run average total cost $10,000 11,000 12,000 Quantity economies of scope economies of scale minimum efficient scale diseconomies of scale

Q31

Safari 09:24 Wed 8 Dec VPN O 93% Screen Shot 2020-12-08 at 10.10.34 AM.png The table below shows the short-run production function for Michelle's Accounting Company. Number of Bookkeepers Total Product per Hour 1 8 20 3 40 4 55 65 6. 70 7 65 8. 55 (a) After which bookkeeper do diminishing marginal returns begin for Michelle's Accounting Company? Explain using numbers. (b) Assume Michelle's Accounting Company sells its accounting services in a perfectly competitive market at a price of $20. Calculate the marginal revenue product of the sixth bookkeeper. Show your work. (c) Michelle's Accounting Company hires bookkeepers in a perfectly competitive labor market for bookkeepers at a wage rate of $110 per hour, and the market price of services remains $20. How many bookkeepers will Michelle's Accounting Company hire to maximize its profit? Explain using marginal analysis. (d) Assume bookkeepers and accounting software are substitutes in providing accounting services by all accounting firms…

Question When do firms decide to shut down production in the short run? Explain it. How is the short run average cost curve and the long run average cost curve shaped? What is the difference between them? Graphical representation of the short-run total cost curve showing total cost, fixed cost, variable cost: and  The marginal cost and average total cost:

Question 44 he table below, between 10 and 20 units of output, what is happening the marginal product curve? R Output Total Cost Marginal Cost 0 100 10 120 20 160 30 230 Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. arch a It is decreasing b It is increasing C unable to determine d It is not changing * Question 45 8 144 hp f10 ||4 9 O 144 f12 + 口 ins prt sc delete home + nu t backspace lo