Reference no: EM13244652
Consider the various short-run cost curves.
(a) why is the total variable cost curve TVC shaped the way itis? In explaining, go back to the most basic assumptions about whathappens when a firm produces output in the short run.
(b) When marginal cost MC is at its minimum value, what can wesay 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 produc 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 particulra type of firm, the MPL isnot diminishing, but it's also not increasing. What does the MCcurve for this firm look like? Why might it make sense to think ofthe firm's capital being, say, a computer network, that multiple workers can use at the same time without slowing down the network?
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What is the logical basis for the conclusion
: Suppose that, for a particulra type of firm, the MPL isnot diminishing, but it's also not increasing. What does the MCcurve for this firm look like Why might it make sense to think ofthe firm's capital being, say, a computer network,
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