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problem 1:

a) Find out BE output with the assist of a linear break even analysis.
b) Illustrate that as variable cost increase, the breakeven output will as well increase.

problem 2: Describe why LAC is U shaped in detail.

problem 3: Discuss the following terms:

a) Learning Curve
b) Economies of scope
c) Cost reduction strategies

problem 4: Deduce the relationship between the AC and MC.

problem 5:

a) Describe how AC is derived from the TC in short run.
b) Describe the relation between AC and MC (both graphically and mathematically).

problem 6:

a) describe why does MC comprise of variable cost only?
b) describe why all costs variable are in long run?
c) Deduce the LAC from the short run average cost curves.

problem 7: Discuss the following terms:

a) BE analysis
b) Learning Curve

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M912525

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