Explain the cost curves of the firm
1. Explain the cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output?
2. Discuss the principal-agent problem and some possible solutions.
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What is the marginal rate of substitution (MRS) and why does it diminish as the consumer substitutes one product for another? Use examples to illustrate.
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Calculate the point price elasticity of demand for TV Plasma during the month of the discount. Calculate the profit maximizing price per unit if Price Mart has an average whole sale cost of $350 and incurs marginal selling cost of $100 per unit
Explain the cost curves of the firm. In terms of economies of scale, why would a firm sometimes want to expand output and sometimes not want to expand output?
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