Determining the capacity utilization rate
Assignment:
A manufacturing shop is designed to operate most efficiently at an output of 950 units per day. In the past month the plant produced 750 units. What was their capacity utilization rate last month?
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(Marginal Cost) Explain why the marginal cost of production must increase if the marginal product of the variable resource is decreasing.
Why do the average total cost and average variable cost curves get closer to one another as output increases?
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What types of changes could shift the long-run average cost curve? How would these changes also affect the short-run average total cost curve?
In the past month the plant produced 750 units. What was their capacity utilization rate last month?
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Explain why the marginal revenue curve for a monopolist lies below its demand curve, rather than coinciding with the demand curve, as is the case for perfectly.
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