Question
In: Economics
Consider the long-run production of shirts. The cost of the indivisible inputs used in the production...
- Consider the long-run production of shirts. The cost of the indivisible inputs used in the production of shirts is $500 per day. To produce one shirt per day, the firm must also spend a total of $4 on other inputs-labor, materials, and other capital. For each additional shirt, the firm incurs the same additional cost of $4.
- Compute the average cost for 20 shirts, 50 shirts, 100 shirts, and 500 shirts.
- Draw the long-run average cost curve for 20 to 500 shirts per day. (2marks)
Solutions
Rahul Sunny answered 1 month agoRelated Solutions
Consider the long-run production of shirts. The cost of the indivisible inputs used in the production...
Consider the long-run production of shirts. The cost of the
indivisible inputs used in the production of shirts is $500 per
day. To produce one shirt per day, the firm must also spend a total
of $4 on other inputs-labor, materials, and other capital. For each
additional shirt, the firm incurs the same additional cost of
$4.
Compute the average cost for 20 shirts, 50 shirts, 100 shirts,
and 500 shirts.
Draw the long-run average cost curve for 20 to...
a. Production & Cost Relationship in the Long-Run Explain the long-run production concept of diminishing returns...
a. Production & Cost Relationship in the
Long-Run
Explain the long-run production concept of diminishing returns
to scale, and what it implies about the long-run average costs of
production.
b.
Quantity of
Umbrellas
Total Cost
MC
0
8
na
1
10
2
2
13
3
3
17
4
4
22
5
5
28
6
6
35
7
(4 pts) Comment on the shape of the short-run total
production curve that gives the input and output
relationship in the short-run. Sketch...
A. In the long-run, a firm’s costs of production are shown by the long-run average cost...
A. In the long-run, a firm’s costs of production are shown by
the long-run average cost curve. (12) (1) What forces explain the
typical shape of the long-run average cost curve? (6) (2) How is
the shape of the long-run average cost curve related to what the
firms in an industry will look like? Will there be lots of firms or
just a few, or perhaps even just one? Will all the firms be about
the same size or will...
. Distinguish the long-run production from the short-run and explain the various long run production function...
. Distinguish the long-run production from the short-run and
explain the various long run production function with the help of
isoquants.
Explain the difference between production in the short run and production in the long run.
Explain the difference between production in the short run and
production in the long run.
Difference between production in the short run and production in the long run: 1. What is...
Difference between production in the short run and production in
the long run:
1. What is the difference between the short-run and long-run? Is
there a fixed time period associated with short-run and long-run?
Explain why or why not.
2. What happens to output in the short-run as production
increases? What inputs are "fixed" and which input is variable in
the short-run? How does this explain diminishing marginal
productivity?
3. What might happen to output in the long-run as the...
What is Production Function? Explain Factors of Production. Differentiate short run and long run production function.
What is Production Function? Explain Factors of Production.
Differentiate short run and long run production function.
What is Production Function? Explain Factors of Production. Differentiate short run and long run production function.
What is Production Function? Explain Factors of Production.
Differentiate short run and long run production function.
A firm uses two inputs in production: capital and labour. In the short run, the firm...
A firm uses two inputs in production: capital and labour. In the
short run, the firm cannot adjust the amount of capital it is
using, but it can adjust the size of its workforce. What happens to
the firm’s average-total-cost curve, the average-variable-cost
curve, and the marginal-cost curve when the cost of renting capital
increases?
The average-total-cost curve (shifts up/shifts
down/do not change) .
The average-variable-cost curve (shifts
up/shifts down/do not change) .
The marginal-cost curve (shifts up/shifts
down/do not change) ....
A firm uses two inputs in production: capital and labor. In the short run, the firm...
A firm uses two inputs in production: capital and labor. In the
short run, the firm cannot adjust the amount of capital it is
using, but it can adjust the size of its workforce.
--
If the cost of renting capital increases, which of the following
curves will be affected? (Check all answers that apply).
--
Average variable cost
Marginal cost
Average fixed cost
Average total cost
2 points
QUESTION 2
If the cost of hiring workers increases, which...
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