Week 7: Interactive activity 7.1 Learning Outcomes Explain the difference between explicit and implicit costs Explain the difference between the short run and the long run Explain the difference between variable and fixed costs Apply the Principle of Diminishing Returns Define economic cost and economic profit Provide examples of production costs. Evaluate a company’s cost […]
Why should the firm’s output return to a more normal cost curve over time? Explain what happened to at least two different types of producer’s profits during 2020 – 2022.
Topic: Marginal Product and Resources We can identify from this reading that as more quantity is produced, inputs used can be purchased in larger quantities – known often as economies of scale. Why was this not the case during 2020 to 2022? What happened in the markets that prevented this normal mechanism from working? There […]
Explain how a 10% wage tax would affect the way in which the firm choose to produce any given amount of output.
Set #31. Suppose that the hourly output of chili at a barbecue (q, measured in pounds) is characterized by q = 20√KL where K is the number of large pots used each hour and L is the number of worker hours employed.a. Graph the q = 2000 pounds per hour isoquant.b. The point K = […]