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Isoquants & The long-run average cost curve Social Sciences Essay

Essay Instructions:

quick and correct
follow the question choose 3 question to answer

 

What does the family of isoquants look like for a firm that has one factor of
production fixed in the short run? Hint Think about a pizza carryout with one large oven with multiple doors
Explain why the long-run average total cost curve is “U” shaped In his 1950 “Supplementary Note to Cost Curves and Supply Curves’” Jacob Vmcr (in reference to his 1931 article) said,"... if I had known what an ‘envelope’ was I would not have given my excellent draftsman the technically impossible and economically inappropriate assignment of drawing an [l.R \AC curve which would pass through the lowest cost point of all the [SR] ac curves and yet not rise above any (SR) ac curve at any point.” Explain what Viner meant by “economically inappropriate ”
What is the short-run supply curve for an individual, profit-maximizing firm in a perfectly competitive market"' Explain why in detail. Your explanation should include a hand-drawn graph and address why the firm would / would not be willing to supply at various prices equal to or less than the firms ATC and A VC. in the short run Explain how your explanation would differ if the market were NOT perfectly competitive and the firms demand curve were negatively sloped
Explain in H-ords (not simply equations) the first and second order conditions for profit maximization Your explanation should address (I) what the condition are AND what each condition means, and (2) why both are important for profit maximization
•
For each of these eight categories of economies/diseconomies of scale, provide a definition, a real world example What is the relationship between economies/diseconomies of scale and the long run average cost curve?
a Internal economies of scale, technological
b. Internal diseconomies of scale, technological
c. External economies of scale, technological d External economies of scale, technological
e. Internal economics of scale, financial
f. Internal diseconomies of scale, financial
g. External economies of scale, financial h External economies of scale, financial

 

Essay Sample Content Preview:

00116173
Name Course Instructor Date
Name
Question 1: Isoquants
In short run, at least one factor of production, which is mostly capital remains fixed and isoquants represent the combinations of inputs needed to produce same output level. Assuming an isoquant with capital on the y axis and labor on the x axis where capital is the fixed input then production would occur along a fixed horizontal line or below it. Isoquants slope downwards from left to right and the level of output produced would remain fixed in the short run and increasing the number of workers would result in diminished returns.
Question 2
The long-run average cost curve is “U” shaped where at first it gradually descends until it reaches a minimum where it begins to rise slowly. The quantities produced increase there is increasing returns to the variable factors, which causes the average costs to decline, then there are constant returns, and then diminis...
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