What is the law of diminishing returns? Explain why it applies only in the short run.

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A:

Q: only typed answer  Consider the following information: Q = 22 L + 57 K PL=52, PK=3, P=28 and C=4763…

A: The objective of a firm is to maximization of profits  This implies selling an optimized quantity of…

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A: Production function:q= fL, K = L0.2 K0.8q = OutputL = LaborK = Capital

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A: The formula for continuous compounding is give as: F = P*ertF : Future value P : present valuer :…

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Q: The following model studies human welfare using the General Social Survey in the US: happy = 0.014…

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A: Monopolistic competition is when many firms are offering similar products and services but not…

Q: 4. The figure below presents the demand curve, marginal revenue, marginal costs, and average total…

A: In a monopoly ,  The profit is maximized where MR = MC  MR is the marginal revenue  MC is the…

Q: First Commercial Bank Assets Liabilities + Net Worth Reserves $200,000 $1 million Deposits…

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