{"id":47115,"date":"2022-03-30T19:55:39","date_gmt":"2022-03-30T19:55:39","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/?p=47115"},"modified":"2022-03-30T19:55:39","modified_gmt":"2022-03-30T19:55:39","slug":"economics-of-production","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/economics-of-production\/","title":{"rendered":"Economics of Production"},"content":{"rendered":"<ul>\n<li>Consider the long-run production of shirts. The cost of the indivisible inputs used in the production of shirts is $400 per day. To produce one shirt per day, the firm must also spend a total of $55 on other inputs-labour, materials, and other capital. For each additional shirts, the firm incurs the same additional cost of $55.<\/li>\n<\/ul>\n<ol>\n<li>Compute the average cost for 50 shirts, 100 shirts, 130 shirts, and 200 shirts. (<strong>5 Marks<\/strong>)<\/li>\n<li>Draw the long-run average cost curve for 50,100,130 and 200 shirts per day. (<strong>5 Marks<\/strong>)<\/li>\n<\/ol>\n<ul>\n<li>Explain the relationship between short run ATC and MC and why ATC is U-shaped in short run? (<strong>2 Marks)<\/strong><\/li>\n<li>Explain equilibrium of the firm under perfectly competitive market by choosing output level at which<\/li>\n<\/ul>\n<ol>\n<li>P=MC=MR and Firm is making zero economic profit (<strong>1 Mark<\/strong>)<\/li>\n<li>P=MC=MR and Firm is making a loss (<strong>1 Mark<\/strong>)<\/li>\n<li>Explain shut down rule with the help of graph (<strong>1 Mark<\/strong>)<\/li>\n<\/ol>\n<ul>\n<li>Define the price elasticity of demand and explain its role to predict changes in quantity and total revenue (<strong>2 Marks<\/strong>).<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Consider the long-run production of shirts. The cost of the indivisible inputs used in the production of shirts is $400 per day. To produce one shirt per day, the firm must also spend a total of $55 on other inputs-labour, materials, and other capital. For each additional shirts, the firm incurs the same additional cost [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-47115","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/47115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=47115"}],"version-history":[{"count":2,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/47115\/revisions"}],"predecessor-version":[{"id":47117,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/47115\/revisions\/47117"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=47115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=47115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=47115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}