Purchase Solution

Cost analysis short run and long run

Not what you're looking for?

Ask Custom Question

Using the information in the following table:

a- Complete the last 2 columns by replacing the * with the correct values.
b- Draw the following curves in one chart
â?¢ Short-run average product (AP) curve;
â?¢ Short-run marginal product (MP) curve.
Table showing the Average and Marginal product of labor for a hypothetical firm
Amount of labor( units) Amount of capital(No. of machines) Output of parts(Q, hundreds of parts) Average product (Q/L) Marginal product(â??Q/â??L)
0 5 0 - -
1 5 49 49 49
2 5 132 66 83
3 5 243 81 *
4 5 376 94 133
5 5 525 * 149
6 5 684 114 159
6.666 5 792.59 119 *
7 5 847 * 163
8 5 1008 126 161
9 5 1161 * *
10 5 1300 130 139
11 5 1419 * 119
12 5 1512 126 93
13 5 1573 121 *
14 5 1596 * 23
15 5 1575 105 *

Purchase this Solution
Solution Summary

This solution features short run and long run cost analysis.

Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Production Economics: Cost Analysis

    509242 Production Economics and Cost Analysis "Cost Analysis" : Production Economics & Cost Analysis - Pick a good or service. Distinguish between the short-run and the long-run production and cost function for that good or service.

  • Short-run & long-run output decisions for a loss-making firm

    This solution shows how a loss-making firm can use marginal analysis to minimize its loss in the short run, and decide what to do in the long run.

  • normal profit

    Which is more important: short-run profit or long-run profit? What is a normal profit? Which one is more important: short-run profit or long-run profit? What is a normal profit? Which one is more important: short-run profit or long-run profit?

  • Total Cost, Average Cost, Variable Cost, and Average Variable Cost

    This solution uses mathematical analysis of costs and revenues to determine whether a losss-making firm should shut down or continue to produce output. Both the short-run and long-run cases are shown.

  • Under What Conditions Can Firms Earn Long-Run Profits?

    429922 Short-run and long-run profits in three market structures.

  • Short-Run Average and Total Cost

    158979 Short-Run Average and Total Cost True or False? Please explain your reasoning. a. The short-run average total cost can never be less than the long-run average total cost. b.

  • Break-Even Analysis and Impact on Profitability

    In addition, the business will also incur loss of reputation and loss of profitability in the long run. The loss of profitability in the long run is far greater than the loss of profitability in the short run.

  • Short-Run Profit maximization

    Thus long-run equilibrium in a monopoly will be characterized by economic profits. If, on the other hand, a monopoly experiences short-run losses it will adjust the scale and characteristic of its plant to eliminate such losses in the long-run.

  • Long-Run Costs and Output Decisions

    the long run Revenue < Variable Cost, and Revenue < Total Cost : Shut down in the short run and shut down in the long run Look at case D Revenue = 5,000 Total Cost = 6,000 Total Fixed Cost = 1,500 Total Variable Cost = Total Cost - Total Fixed

View More Related Solutions