Explaining causes of economies and diseconomies of scale

Question

Question 1) Differentiate between explicit and implicit costs, and between normal and economic profits.

Question 2) Describe why normal profit is an economic cost, but economic profit is not.

Question 3) Describe the law of diminishing returns.

Question 4) Distinguish between short run and the long run.

Question 5) Calculate marginal and average product when given total product data.

Question 6) Describe the relationship between total, marginal, and average product.

Question 7) Differentiate between fixed, variable and total costs.

Question 8) Describe the difference between average and marginal costs.

Question 9) Calculate and graph AFC, AVC, ATC, and marginal cost when given total cost data.

Question 10) Describe how AVC, ATC, and marginal cost relate to one another.

Question 11) Relate average product to average variable cost and marginal product to marginal cost.

Question 12) Describe what can cause cost curves to rise or fall.

Question 13) Describe the difference between short run and long run costs.

Question 14) Explain why the long run average cost is expected to be U shaped.

Question 15) Write down causes of economies and diseconomies of scale.

Question 16) Show relationship between economies of scale and number of firms in an industry.