1. In general, the marginal cost curve is U-shaped as you learned in lectures an
ID: 1239582 • Letter: 1
Question
1. In general, the marginal cost curve is U-shaped as you learned in lectures and the textbook. However, exception exists. Please provide one particular industry as an example to illustrate that MC is not U-shaped. Explain briefly the shape of MC in the industry.2. Engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of gasoline. They estimated that in mass production the car would cost $40,000 per unit to build. The engineers argued that Congress should force U.S. automakers to build this energy-efficient car. In your opinion, is energy efficiency the same thing as economic efficiency? Please explain your opinion and state whether you support it or not.
3. Assume that a firms long-run average total cost (ATC) is constant. Which of the following functions, where Q is output; L is labor input; K is capital input, is more likely to represent the firms production? Please explain your choice.
Q = f(L,K) = L + K
Q = f(L,K) = L*K
Q = f(L,K) = L^2 + K^2
Explanation / Answer
MPL=dq/dL= 1. MPK=dq/dK=5 MRS=1/5
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.