What is optimization? How does it blow up the myth about profit being a result of a mere increasedecrease interplay between cost and revenue?

Q: What is Explicit Cost?

A: The cost of production is the cost incurred in the process of production in the economy by a firm.…

Q: How can we predict cost behavior?

A: Cost behaviour shows the relation between the total cost and activities level. We can predict the…

Q: What will be the marginal cost if the change in total cost is $55 and Change in quantity is $60.

A: Marginal cost determined to be a cost, which involves increase or decrease to the overall cost of…

Q: How can a company have a competitive advantage without scale?

A: Differentiation Strategy.Being distinctive is a great approach for businesses to differentiate…

Q: What would be the value of economic profit if explicit cost is $200, implicit cost is $150 and total…

A: The data presented in the question above is:- Explicit cost of the firm = $200 Implicit cost of firm…

Q: What effect, if any, does diminishing marginal product have on the shape of the marginal cost curve?

A: According to the law of diminishing marginal returns, after a certain level adding additional units…

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

A: Fixed cost is the cost which does not change with the change in the output.Marginal cost is the…

Q: Another important law in economics is the “law of marginal returns or the law of increasing costs".…

A: Marginal return refers to the additional output that obtained by increasing one more unit of input.

Q: What are the determinants of the relationship between economies of scale and market structure.

A: We are going to discuss the definition of economies of scale and market structure to answer this…

Q: + 50. What is the equation for marginal cost? At what point is marginal cost minimized?

A: C = Q3/3  - 3Q2 + 15 Q + 50  The marginal cost(MC) is the additional cost that is incurred by the…

Q: When the quantity is placed in the cost equation / function I am getting a different price. Aren't…

A: Monopolist: A monopolist is a single seller in the market and hence he faces the downward sloping…

Q: Describe several ways a firm could lower their costs.

A: Cost reduction is the process by which a business attempts to generate a specific level of output at…

Q: Let us assume you are a consultant of a firm. You realize that due to costs structures changes, the…

A: It can be defined as a type of cost that varies with the change in the output or production, When…

Q: In recent years, the United States has experienced large increases in oil production due in large…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: If the marginal cost is increasing does this tell you whether the average variable cost is…

A: Economic costs involve not just the accounting costs but also the opportunity cost of making one…

Q: What does average fixed cost fall with increase in output?

A: Fixed cost per unit of output is known as average fixed cost. Because the same amount of fixed costs…

Q: Suppose Honda's total cost of producing 4cars is $225000and its total cost of producing 5cars is…

A: Given, Total cost of producing 4 cars = $225000 Total cost of producing 5 cars = $ 250000

Q: We expect the marginal cost to increase as this firm produces more computers. But when the firm…

A: The rise or fall in the cost of producing/providing one more product is referred to as marginal…

Q: The United Kingdom started regulating the size of grocery stores in the early 1990s, and today, the…

A: Economies of scale basically refer to the cost advantages that a business can achieve as it…

Q: A watch manufacturer finds that at 1,000 units of output, its marginal costs are below average total…

A: In business, the average total cost, or ATC, is the sum of all product costs divided by the volume…

Q: What is the difference between implicit and explicit costs? Why do economists include both implicit…

A: Each firm in any industry is driven by profit motive. The goal of a firm is to maximize its sales…

Q: The cost curve for producing widgets passes through the following points and is piecewise linear in…

A: Given Information: Units produced Costs 0 $600 200 $1200 400 $1600 600 $1800 The fixed…

Q: What happens to fixed cost as the quantity produced increases?

A: In the market, when a firm makes production activities, there are various costs incurred during this…

Q: Draw an example of the Total Fixed Cost, Total Variable Cost, and Total Cost of a company whose…

A: The term total cost refers to the sum of all the costs that are used in the production of a…

Q: You produce widgets. Currently you produce four widgets at a total cost of $40. What is your average…

A: The average cost is the total cost divided by the quantity of output whereas the marginal cost is…

Q: What is meant by normal profit?

A: The total revenue earned by a firm operating in a market is the sum of payments received from the…

Q: total revenue (TR) and total variable cost

A:

Q: Is this graph a valid set of cost curves? True/False

A: Cost Curves: In microeconomics, cost curves shows the production cost and output quantity. The cost…

Q: COS

A: The additional cost occur due to an extra output production depicts marginal cost (MC). The overall…

Q: What is the difference between economic profit and accounting profit? What is a normal rate of…

A: As per honor code, we’ll answer only one question at a time , we have answered the first question…