Explain the relationship between average and marginal cost, Managerial Economics

Assignment Help:

Question:

i) If X and Y are different processes producing the same commodity and the joint total cost (TC) is given by:

TC = X2 + 2Y2- 3XY

Using Lagrange Multiplier, find the X and Y which minimize costs when the prescribed level of output is 24.

ii) Critically and clearly explain the Law of Diminishing Returns to scale and to a factor.

iii) What do you understand by „Learning Curve? and how management can make use of the learning curve for production decision?

iv) Explain the relationship between average cost and marginal cost in the long run and briefly outline how it is a guide to management decision making.


Related Discussions:- Explain the relationship between average and marginal cost

The law of diminishing returns (law of variable proportions), THE LAW OF DI...

THE LAW OF DIMINISHING RETURNS  (LAW OF VARIABLE PROPORTIONS) One of the most important and fundamental principles involved in economics called the law of diminishing return

Explain the term- takes the help of macroeconomics, Takes the help of macro...

Takes the help of macroeconomics Managerial economics incorporates certain aspects of macroeconomic theory. These are important to comprehending the circumstances and environme

Mba assignment, what is the role of managerial economics in running a busin...

what is the role of managerial economics in running a business?

Way to deal with price rises, a) A country should always protect its dome...

a) A country should always protect its domestic industries. Discuss. b) To what extent can a country actually rely on the principle of Comparative Advantage before engaging

determine the wage rate , Northern Lumber operates a large lumber-processi...

Northern Lumber operates a large lumber-processing mill in a small town in Washington State.  It is one of the larger lumber producers in the region and has some market power in th

Basis of wage claims, The Basis of Wage Claims The union's demand for ...

The Basis of Wage Claims The union's demand for higher wages is normally based  on one or more of the following four arguments: 1. The cost of living argument This is

Calculate the marginal product of labor, The production function of a small...

The production function of a small shop that frames pictures is Q = 5 √ LK where Q is the number of pictures framed per day, L is labor hours and K is the machine hours.

Marginal cost, Marginal Cost This is the increase in total...

Marginal Cost This is the increase in total cost resulting from the production of an extra unit of output.  Thus, if TC n   is the total cost of producing n

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd