Suppose the firm is operating in a high-wage country, where capital cost is $50 per unit per day and labor cost is $10 per worker per day, which technology is cheapest?

Q: If a technological advance increases a firm's labor productivity, we would expect the firm's:…

A: If a technological advance increases a firm's labor productivity, we might expect its: average total…

Q: How do fixed costs change over the long-term? Do costs get re-categorized into a variable cost when…

A: Fixed costs are the costs that do not change with the change in quantity while variable costs are…

Q: The long-run is a period of time long enough so that all inputs, including facility and equipment,…

A: PLEASE FIND THE ANSWER BELOW.

Q: Which of the following is always downward-sloping? a. The marginal cost curve when it is below the…

A: The firms, producers, and sellers are considered to one of the major players in the markets. The…

Q: Calculate the multifactor productivity in dollars per dollar for the following: 6660 units produced,…

A: Multifactor productivity is the measurement that compares the output with the total amount of inputs…

Q: Introduction to Calculus in Economics (continued): In the previous Problem Set question, we started…

A: Differentiation is the process of finding derivatives. It basically gives the rate of change in one…

Q: Suppose a firm is producing 1,000 units of output. Its average fixed costs are $100. Its average…

A:

Q: Again referring to the table above, assuming 5 workers per day, the total cost of producing pizzas…

A: We know,  Total cost(TC) = Fixed cost (FC) + Variable Cost(VC)

Q: Define the economies and diseconomies of scale and depict graphically how they relate to the long…

A: There are three types of returns to scale- Economies of scale The constant return to scale…

Q: Often the marginal cost (MC) is initially decreasing as Q rises because... the marginal productivity…

A: Marginal product refers to change in total output due to an addition of one more unit of input.

Q: A firm can use three different production technologies, with capital and labour  requirements at…

A: The firms use different types of inputs in different production technology to produce goods. Labor…

Q: Suppose the firm is operating in a high-wage country, where capital cost is $100 per unit per day…

A: The main objective of every firm is to utilize its inputs in such a way that its profits are…

Q: If both the fixed and variable costs associated with a product decrease, what will be the effect on…

A: The breakeven point is determined by partitioning the fixed costs of production by the cost per unit…

Q: The long run is a period of time, or a time frame, in which        all resources are fixed.…

A: A long run in the economics is the time when the manufacturers and producers have the flexibility of…

Q: Which expression is another way of saying "marginal cost"?                Scarce resources…

A: Marginal cost is the increment in total cost for producing additional units of a commodity. It is…

Q: Which of the following is always downward-sloping?  a. The marginal cost curve when it is below the…

A: Marginal cost refers to change in total cost with respect to change in output. Average total cost…

Q: Explain how the long-run average cost curves will differ between a private hospital and a soft-drink…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Which of the following must be falling when the short run marginal cost is less than it, and rising…

A: Total Cost is the sum of the Total Variable Cost and Total Fixed cost of any firm. Total Fixed is…

Q: Output is produced according to a production process given by: Q = 4LK, where L is the quantity of…

A: A production function represents the relationship of the manufacturing output with the given factors…

Q: Differences between implicit cost and explicit cost

A: Explicit costs are defined as those costs which leads to an outlay of cash from the business. It is…

Q: During the previous month, a firm produced 250 tablet devices at an average variable cost of $40 and…

A: Given:Average variable cost=$40 Average fixed cost=$10Total output=250 tablets

Q: Suppose Alaska could add 1000 MWh of wind generation—which produces for four hours during the…

A: Solve with the help of graph marginal cost curve

Q: Which of the following would be a source of economies of scale? the quantity of labour more…

A: Marginal cost is the additional cost incurred in order to produce an additional unit of output thus…

Q: Which of the following sources of low costs is most popular? Group of answer choices   Economies of…

A: Cost is minimized when large output can be produced with limited resources and available technology.…

Q: If accounting profit is $400000 greater than economic profit, what do implicit costs equal?

A: Implicit cost: A certain expense is any cost that has just happened yet not appeared or detailed as…

Q: A fixed input is one: Select one: a. that can never produce more or less in any period. b. that only…

A: In a broad sense, there are two types of inputs (factors) used in the production i.e. fixed input…

Q: In the table, the average variable cost at 2 units of output is

A: Answer to the question is as follows :

Q: Define economies of scale

A: Economy of scale is a microeconomic term used as an important element of productivity growth.…

Q: Which of the following are relevant to a firm’s decision to increaseoutput: (a) short-run average…

A: The total cost incurred by firms operating in a market includes fixed costs and variable costs.…

Q: Answer the following: If TVC = $80 and AVC = 4, then what does quantity (Q) equal? (b) If…

A: Total cost = TFC + TVC AVC = TVC/Q AC =TC/Q MCn=TCn -TCn-1= change in TC/change in Q AFC = TFC/Q

Q: What is the average variable cost of producing 400 units of output?

A: Answer: Given that:      Labor  Output   Marginal Cost  Variable Cost  Fixed Cost  0  0    0  5…

Q: Which of the following is always true?A) When marginal costs are less than average total costs,…

A: Below are the cost curves: (Sorry it’s a free hand diagram so it is not very neat)

Q: Rafael quit his job paying him $74,000 per year to be a consultant. Last year he started a business…

A: Explicit cost: It is the actual monetary expenditure required to run a business.  Implicit cost: It…

Q: Imagine you own your own business. Based on what you learned from the simulation, what factors would…

A: The firms total costs are equal to the sum of its variable costs and fixed costs. Fixed costs are…

Q: Is it true that if a firm’s technology exhibits the decreasing return to scale, then average…

A: Introduction The scale of production in two factor production function means a given amount of labor…

Q: Suppose the production function is q = 6L0.60K0.90. Determine the long-run capital- to-labor ratio…

A: A firm will maximise profit at a point where marginal rate of technical substitution is equal to…

Q: The diagram displays short-run cost curves for a facility that produces liquid crystal display (LCD)…

A:

Q: The cost, in dollars, of producing æ units of a certain item is given by C (z) = 5x – 4/7 – 1. Find…

A: Average cost (AC) is defined as the per unit cost of producing a commodity.  AC = TC/x

Q: capital and labor requirements at each level of output as follows: TECHNOLOGY 1 TECHNOLOGY 2…

A: a) When firm is operating in a high-wage country:-   Technology 1     Technology 2     Technology…

Q: Compare and contrast economies of scale and economies of scope. Give an example of each from your…

A: Introduction Economies of scale: Economies of scale occur when the quantity of goods increases and…

Q: How can a programmer profit from the ability to learn new languages, even if they are already…

A: A programming language is a type of  computor language which is written and tells computers what to…

Q: If a cost-minimization firm’s marginal product of labor equals 1 ton of output, while the marginal…

A: Given  Marginal Product of labor(MPL)  = 1 ton of output.  Marginal Product of capital l(MPK) = 7…