The optimal level of production is the level that either maximizes profits or minimizes losses. How does one determine the optimal level of production for any business? Explain.
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The optimal level of production is the level that either maximizes
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- The optimal level of production for any company is the level of production that either maximizes profits or minimizes losses. How does one determine the optimal level of production for any business?How many units of labor and capital should be purchased to maximize production? What is the maximum number of units of production?What mix of inputs should be used to produce a given level of output?
- At what level of production does the marginal cost have the least value? What is the marginal cost at this level of production?Why does more inputs not necessarily translate into more output?The Principle of Diminishing Marginal Returns means what? the more a good is consumed, the lower the average benefit from consumption. the more of a good that is produced, the greater the benefit of the last good to the supplier. the less of a good that is produced, the greater the average productivity of inputs. The more of a good that is produced, the lower the productivity of the last input to production. the more of a good that is produced, the greater the marginal productivity of the last input.
- What must an entrepreneur do to earn a profit? How do the actions of firms earning profits influence the value of resources?TRUE or FALSE and explain your answer fully If the cost of production is minimized, then all inputs that are used must have the same marginal productivity.True/False: Ryan has coffee shop. If the marginal cost of producing the tenth cup of coffee is $1.50, and if the average total cost of producing the nine cups of coffee is $2, then find the average total cost of producing the ten cups of coffee. Show your work.
- X and Y are both factors of production. X's marginal product is 30 and Y's is 20. X is $5 each and Y is $4 each. Knowing that Y costs less than X, we can assume that the firm will make the same output at a cheaper cost by using less of X and more of L. Is this statement true or false? Explain.Why is having a business objective of increased economies of scale always desirable?What explains the shape of the average and marginal cost curves? Is it linked to any production relationships?