Difference between a short-run and a long-run cost function

Assignment Help Business Economics

Reference no: EM13853882

1) Describe the cost function and explain the difference between a short-run and a long-run cost function.

2) Describe the elements of a cost schedule which can be derived total, fixed, and variable costs.

3) Compare and contrast the short-run cost function and the long-run cost function and explain why economies of scale is considered to be a long-run phenomenon.

4) Use the tools of calculus to derive the short-term average cost and average variable cost functions from the total cost function.

5) Describe the various forms of production functions that are used in statistical estimation of these functions.

Reference no: EM13853882

Questions Cloud

What is the variable and average cost function : Suppose the restaurant’s cost function for shrimp balls is C(Q) = 2500 + Q + Q2, and the marginal cost curve is therefore MC(Q) = 1 + 2Q. What is the variable cost function? What is the average variable cost function? What is the average cost functio..

How positive work environment impact productivity : Working in an environment where staff are close is very nice. How does having a positive work environment impact productivity

Draw indifference curve and budget line diagram : Jon consumes only two goods: coffee and donuts. When the price of coffee falls, he buys the same amount of donuts and more coffee. Draw a indifference curve and Budget line diagram to illustrate Bob's pattern of consumption. What does this tell us ab..

Prepare a statement of retained earnings in proper form : Prepare a statement of retained earnings in proper form for White Corporation for the year ended

Difference between a short-run and a long-run cost function : Describe the cost function and explain the difference between a short-run and a long-run cost function. Describe the elements of a cost schedule which can be derived total, fixed, and variable costs. Compare and contrast the short-run cost function a..

Toby is indifferent between the bundles : Toby is indifferent between the bundles (9, 3) and (5, 5). When Toby is at (9, 3), he would be willing to give up one unit of y if he were to receive two units of x. If Toby is at (5, 5), he would be willing to give up four units of x if he were to r..

How does austen represent masculinity : How does Austen represent masculinity? What types of men does the depict? Is there an ideal representation of masculinity? Consider Sense and Sensibility as a "conduct" manual and analyze the "advice" Austen is offering to young women.

Calculating the price elasticity of demand : Suppose that during the past year, the price of a laptop computer fell from $2,650 to $2,430. During the same time period, consumer sales increased from 495,000 to 664,000 laptops. Calculate the elasticity of demand between these two price–quantity c..

Geography can affect a countrys income and prosperity : Explain two distinct factors through which geography can affect a country's income and prosperity. For both of these factors described in part A, discuss whether you think the effect of these on a country's income is fixed over time or whether the ef..

User Account

All Pages