Explore BrainMass

Economics Concepts - Production and Cost

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Write a 2 page paper, with a reference page that addresses the following:

Explain the production function and discuss why it is important.
Explain diminishing returns to an input and give an example.
Discuss why a firm's cost curve might be different in the short-run versus the long-run.

APA format Times Roman 12
Due on Tuesday January 21 by 5:00 pm central time.

The ebook I am trying to upload is Microecomoics, chpter 11 Behind the Supply Curve:
Inputs and Costs but I do have the powepoint that he used for the seminar, I do no think that would be much help.

© BrainMass Inc. brainmass.com October 25, 2018, 9:17 am ad1c9bdddf


Solution Preview

In compliance with Brainmass rules this is not a completion of assignment but only background help.

The production function shows the relationship between the amounts of factors used and the amount of output generated per period of time. It shows the relationship between the inputs and outputs. The inputs are land, labor, capital, and organization. The production function relates the physical output of the production to factors of production (inputs). In practice the production function is important because it helps show allocative efficiency in the use of factor inputs. This is important because the producer is interested in getting the maximum output from a set of resources or inputs available to him (Thomas J. Clifton, Edward Shepard, 2004). The producer tries to combine these inputs in an efficient manner so that he obtains maximum desired output of goods. This is important because the production function helps make the choice of how much of a factor of input to the use may be substituted for another. How much of each factor input to use to produce ...

Solution Summary

Three economics concepts are explained in a structured manner in this response. The answer includes references used.

See Also This Related BrainMass Solution

Fundamental economic concept of opportunity costs

Production Possibilities Curve

The Production Possibilities Curve is an economic model that is used to represent many economic concepts such as scarcity, opportunity cost, and efficiency.

Required Case Readings:

Rittenberg L. and T. Tregarthen (2009). Chapter 1 (sections 1-3): Economics: The Study of Choice Principles of Microeconomic Analysis. FlatworldKnowledge.com. Retrieved June 6, 2011 from: click here

Rittenberg L. and T. Tregarthen (2009). Chapter 2 (sections 1-4): Confronting Scarcity: Choices in Production Principles of Microeconomic Analysis. FlatworldKnowledge.com. Retrieved June 6, 2011 from: click here

After reading the materials listed above, please address the following questions in a 4-5 page essay:

1. How does a college education increase one's human capital?

2. Does your college tuition fully reflect the opportunity cost to you of taking the course? What is your personal opportunity cost of taking this course?

Review the Case in Point essay - The European Union and the Production Possibilites Curve, - in section 4 of Chapter 2 in the Principles of Microeconomics online text listed above to address the following two questions.

3. Does a reduction in trade barriers cause a country to move closer to its production possibilities curve or does it cause the production possibilities curve to shift outward? What factors would cause the production possibilities curve to shift outward (economic growth)?

4. Using the same case, what role did comparative advantage play in trade among member nations? What was the effect on the standard of living among trading nations?

Case Assignment Expectations:

Use concepts from the modular background readings as well as any good quality resources you can find from the cyberlibrary or other internet search engines. Please be sure to cite all sources within the text and a reference list at the end of the paper.

The following items will be assessed in particular:

Your ability to understand fundamental economic concept such as opportunity costs.

Some in-text references to the modular background readings (APA formatting not required).

The essay should address each element of the assignment. Remember to support your answers with solid references including the case readings.

View Full Posting Details