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rubyzebra416Lv1
28 Sep 2019
Consider the various short-run cost curves.
(a) why is the total variable cost curve TVC shaped the way it is? In explaining, go back to the most basic assumptions about what happens when a firm produces output in the short run.
(b) When marginal cost MC is at its minimum value, what can we say about the nature of the marginal product of labor (MPL) curve(I.E., is it upward sloping or downward-sloping)? What is the logical basis for your conclusion?
(c) When average variable cost AVC is at its minimum value, what can we say about the nature of the marginal product of labor (MPL) curve (I.E., is it upward sloping or downward-sloping)? What is the logical basis for your conclusion?
(d) Suppose that, for a particular type of firm, the MPL is not diminishing, but it's also not increasing. What does the MCcurvefor this firm look like? Why might it make sense to think of the firm's capital being, say, a computer network, that multiple workers can use at the same time without slowing down the network?
Consider the various short-run cost curves.
(a) why is the total variable cost curve TVC shaped the way it is? In explaining, go back to the most basic assumptions about what happens when a firm produces output in the short run.
(b) When marginal cost MC is at its minimum value, what can we say about the nature of the marginal product of labor (MPL) curve(I.E., is it upward sloping or downward-sloping)? What is the logical basis for your conclusion?
(c) When average variable cost AVC is at its minimum value, what can we say about the nature of the marginal product of labor (MPL) curve (I.E., is it upward sloping or downward-sloping)? What is the logical basis for your conclusion?
(d) Suppose that, for a particular type of firm, the MPL is not diminishing, but it's also not increasing. What does the MCcurvefor this firm look like? Why might it make sense to think of the firm's capital being, say, a computer network, that multiple workers can use at the same time without slowing down the network?
Chika IlonahLv10
28 Sep 2019
