Define Marginal Cost or MC
Define Marginal Cost and also its functions?
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Marginal Cost (MC): It is the additional cost of producing an extra unit of similar product. In this module, marginal cost drops/falls and then increases as the level of production rises. The cause for this pattern in marginal cost is that the firm experiences rising returns to production initially (that is, higher further output per each additional unit of input), however as production carries on to grow, diminishing returns to production take place (that is, lower additional output per each additional unit of input). Diminishing returns take place in short run due to utilization of variable resources in grouping with at least one fixed factor of the production.
I have a problem in economics on fixed input in short run. Please help me in the following question. Which of the given below is most likely to be the fixed input in short run for General Motors? (i) An assembly line worker. (ii) Paint for cars. (iii)
The Minimum wage legislation is UNLIKELY to aid: (i) Skillful workers who compete with untrained workers. (ii) Untrained workers who don’t lose their jobs. (iii) Buyers of goods which are more capital intensive associative to the buyers of labor intensive goods.
A profit-maximizing monopolist which does not price discriminate and that faces a demand curve that is higher at some output levels than is the firm’s average variable cost curve finds out price and quantity where: (w) profit pe
State the relationship between MPC and multiplier? Answer: The value of multiplier differs directly with MPC. K=1/1 - MPC.
When curve C reflects the long run supply curve for this industry as in illustrated figure, in that case the short-run supply curve would be: (i) curve A. (ii) curve B. (iii) curve C. (iv) curve D. (v) curve E.
When Christmas trees are a constant cost industry and such firm is typical, in that case the industry’s long-run supply curve is curve that is: (w) A. (x) B. (y) C. (z) E. Q : Labor Unions and Aggregate salary Income The least probable outcome when unions succeed in increasing their member’s salaries is that: (1) Wages in non-union sectors will drop. (2) Employment will produce in non-union sectors. (3) Barriers will be building up to limit the entry to unions. (4) Labor's s
The least probable outcome when unions succeed in increasing their member’s salaries is that: (1) Wages in non-union sectors will drop. (2) Employment will produce in non-union sectors. (3) Barriers will be building up to limit the entry to unions. (4) Labor's s
The income elasticity of demand is a measure of the: (w) relative responsiveness of quantity demanded to changes within income. (x) absolute change within demand yielded by an absolute change within income. (y) slope of the income-consumption curve. (
The strikes tend to be resolved after worker’s savings trickle down to a discomfort region and there is an exhaustion of: (i) Public tolerance, causing government to set the fair settlement. (ii) Managers and inventories, causing the firms to increase their offe
In the year of 1983, the Reagan Administration introduced a new agricultural program known as the Payment-in-Kind Program. To distinguish how the program worked, let's assume the wheat market. Assume the demand function is QD = 28 - 2P and the supp
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