Short run marginal costs and supply scenario

Related BrainMass Solutions

• The long-run industry supply curve for an increasing-cost industry

  This can conversely be seen in a shorter term scenario in which there are more trade-offs between the price and supply of goods and services than those in the long run.

• Productivity and Cost

  to be the sequence of short-run (SR) scenarios for varying scale of plant and equipment.

• Calculating MC and Profit maximizing output level

  It also depicts the procedure to find profit maximizing output level and finally derives firm's short run supply function.

• Justifications for downward sloping demand curve

  Because of the law of diminishing marginal returns, firms often face positively sloped supply curves. In the short run, each additional unit produced often costs the firm more than the prior one.

• Short-Run Firm Supply

  Calculate short-run firm supply at industry prices of $200, $500 and 1,000 per ton.

• Production function, MC, AVC, TC, lagrangian multipliers

  a) assuming W = 1 and F = 2, draw the marginal cost function (MC), average variable cost (AVC) and the total cost function (TC). Be sure to find Y such that MC = AVC and Y such that MC = AC b) What is the short run function?

• Profit Maximization

  run supply schedule for the scenario given and also answers a number of other related questions.

• economic profits

  What will happen in the long run? Firm is making profits in the short run. So, more firms will enter into the market and thus supply will increase. It will squeeze the prices. Firm will operate at minimum of their average total cost curve.

• Finding the long run and short run equilibrium parameters

  It also analyzes the effect of short run profits on long run equilibrium and profitability.

• Short discussion type questions

  Describe the short-run and the long-run. 7. Define diminishing marginal returns. Define marginal product. Explain why diminishing returns occur. 8. Define fixed costs, variable costs, marginal cost, and total costs. 9.