Question

Please give me some economics experience example you have done.

Answer 1

The first example is related to the cost curves involving average total cost (ATC) that first decreases then increases, marginal cost (MC) curves and average variable cost (AVC) curves. It tells the level of output to be produced by the firms to maximize the profit.

The second example of economics is taken up from the marginal principle where the marginal cost is equaled with marginal benefit. That is the level where the profit or utility is maximized. It can be shown by the following data.

Labor unit	Marginal Benefit	Marginal cost
1	10	6
2	8	6
3	6	6
4	4	6
5	2	6

From above data. it can be observed that at 4 units of labor, marginal benefit equals marginal cost. So, at 4 units of level, utility or profit is maximized. Afterwards, the utility will decrease. This principle is extensively used in the business decisions.