State the decision rules used for finding the optimal amount of input(s) in both short-run and long-run production”  b. Using your own words, explain the rationale behind each stated rule as if you were explaining them to someone who has not yet completed:  c. The Demand for Labor is the visualization of what important short-run production concept, and what would shift this demand curve to the right?

Q: For an increase in output, average costs change by more in the short-run than in the long run, but…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: B. Refer to the figure below. LRAC a. In the short run, capital is a fixed cost. Draw for a few…

A: Short Run Average Cost (SRAC) is equal to average fixed cost and average variable cost. It is…

Q: Explain how a firm can have constant returns to scale in production and economies of scale in cost.

A: Constant Returns to scale refers to the situation where with the change in the production, the cost…

Q: (a) Explain the law of diminishing marginal returns in the Theory of Production. (b) Does this law…

A: The law of ‘diminishing marginal returns’ states that with the increase(↑) of a single production…

Q: Use the following information on a hypothetical short-run production function to answer questions…

A: The law of diminishing marginal returns states that, in a production process, the successive…

Q: How does the impact of fixed costs change production decisions in the short run and in the long run?

A: A fixed cost(FC) is an expense that doesn't change with an expansion or reduction in the measure of…

Q: When do firms decide to shut down production in the short run? Explain it.

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: what is the use of production fuction in product analysis?

A: Production analysis refers to the analysis of the process in which resources categorized as land,…

Q: Explain how the stages of production are determined. Give information about the shape and slope of…

A: A production function shows the unique relationship between inputs and outputs. It shows the maximum…

Q: 3. For each graph given below is it possible that the solid curve is the short-run average cost…

A: Cost curve: A cost curve is a graph of production costs  as a function of total quantity produced.…

Q: Interpret the diagram below and discuss your understanding of the concept of the inflexibility of…

A: In different time the behaviour of input changes like in short run only one factor is changeable…

Q: It is clear that businesses operate in the short run, but do they ever operate in the long run?…

A: When a business is established the main focus of the owner is to conquer the short-run functions and…

Q: a) Explain what is meant by the terms marginal cost and decreased cost in production theory, and…

A: Disclaimer :: as you posted multiple questions we are supposed to solve the first one only. Cost is…

Q: Which are the following are short-run and which are the long-run adjustment? Explain with the help…

A: The long-run is the situation when there are no fixed factors (every factor is considered as a…

Q: 7. For the following industries, state whether the long-run average cost curve has an extended range…

A: In the long run, the AC curve will be upward sloping when it exhibits to decreasing returns, it will…

Q: Explain how a firm may transition from the short-run production decision to the long-run production…

A: In short-run, Price = short-run marginal cost (SMC). The firm would produce that output at which P…

Q: 1. (Production) Jasmine has just inherited a restaurant. In the short run, she has to stick with the…

A: The short-run is a notion that states that at least one input is fixed while the others are variable…

Q: Which are the following are short-run and which are the long-run adjustment? Explain in your own…

A: The long-run is the situation when there are no fixed factors (every factor is considered as a…

Q: How the shape of the total variable cost curve (TVC) and total cost curve (TC) is related with the…

A: Cost refers to the financial valuation of products and services purchased by manufacturers and…

Q: Define and explain the difference between short run and long run and identify the relationship…

A: Short-run average cost curves: In the short run, the shape of the average cost curve is 'U' shaped.…

Q: Draw the MC and the ATC curves and show graphically: (a) The long-run optimal production and price…

A: (a) In the long run optimal production and price level for a firm will be at a equilibrium point…

Q: BONUS: Explain precisely why in the short run the Marginal Cost curve intersects the Average Cost…

A: Minimal cost (MC) is the additional expense brought about when an additional one unit of output is…

Q: What is the difference between a feasible production plan in the short run and in the long run? Give…

A: Feasible production plan in the short run: In the short run, even though the firm is facing loss, it…

Q: Explain the difference between the short and long run

A: Short run It represents the time period in which input quantity of at least one input is fixed…

Q: M/c question - Micro 21)For a firm, what does the production function represent? A. the…

A: 21) option c is the correct answer option-c       quantity of inputs and quantity of output…

Q: 4). The Greening of Motels and Hotels ( Hotels and motels that have gone green are using on average…

A: Going green: It refers to the technique under which the business will try to pursue those practices…

Q: what is the importance of long run and short run production in production theory?

A: A production function is a functional relationship between the inputs which are used in the process…

Q: 4. Which situation below describes the increasing returns stage of the production function? a.…

A: Increasing return stage means the production increases more than the increase in input…

Q: True or false. In general, production can display diminishing returns in all variables but still…

A: Diminishing returns are defined as a decrease in output due to an increase in the input after an…

Q: Average fixed cost, average total cost a -Why does average fixed cost continuously fall as output…

A: Average fixed cost- It is the cost that is per unit of Total fixed cost. AFC=TFCQ Average total…

Q: How does the firm increase its production in the long-run? What input/s can it use to increase…

A: The process of production is the transformation of the raw materials into the final finished goods…

Q: The saying “too many cooks in the kitchen can spoil the stew” can be used to describe the concept of…

A: According to the law of declining marginal returns, adding a new factor of production leads to…

Q: Explain what is meant by and what causes "Diminishing Marginal Product". Why is it only relevant in…

A: Marginal product refers to the increase in outpit resulting from employing additional units of…

Q: What is the difference between short-run and long-run in production theory?  *Explain thoroughly*

A: Production is defined as the process in which factors of production or inputs are put to use in…

Q: Hammas Dadani operates a business and uses the following table for total output or total product as…

A: 1. Marginal Product of Labor (MPL) The marginal product of labor is the increase in total production…

Q: A firm uses two inputs in production: capital and labor. In the short run, the firm cannot adjust…

A: The factors of production refers to all the inputs which are used in the production off goods, and…

Q: A9. The diagram below depicts a firm's short-run production function and two isoprofit lines (and).…

A: A firm hires factors of production from the household sector in the form of land, labor, capital and…

Q: a. Discuss the following statements: i. The second stage of production is the optimal one for a firm…

A: There are three stages of production. 1. stage -1 : Increasing return  2. Diminishing return 3.…

Q: 4. )At Alan's landscaping firm, labor is fixed in the short run. Increasing his use of capital…

A: The first stage is increasing returns, the second stage is diminishing returns and the third stage…

Q: Explain the difference between the short and the long run in production

A: The function that depicts the existence of technological relation between quantities of the good…

Q: 7. For the following industries, state whether the long-run average cost curve has an extended range…

A: Handcrafting work are critical as far as monetary turn of events. They provide plenty of job…

Q: What is the difference between production in the short run and production in the long run? Explain…

A:

Q: In Production Theory, what is meant by "short-run" production period? What is meant by "long-run"…

A: In production theories, short run and long run periods are categorized according to the time period…