Reference no: EM13854240
1- Why would one be unable to associate particular amounts of calendar time with the concepts of market period, short-run period, long-run period and historical period ?
2- List as many reasons as you can why the low of diminishing retunes or variable proportions is likely to take effect in the short run in the operation of a business?
3- Why does marginal cost have such a strong influence on the supply response of a firm?
4- Can you think of any firms (or industries) in which long-run average cost is likely to (a) fall? (b) remain constant? (c) rise as output increases ?
5- Alpha Lumber Co. has the following short-run total costs :
Total explicit cost = $40,000
Total implicit cost = $20,000
How profitable (Economic profit, normal profit or economic loss) is the company in each of the following cases:
a- Total revenue = $65,000
b- Total revenue = $60,000
c- Total revenue = $55,000
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