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

Explain maximising revenue method, Q. Explain Maximising revenue method? ...

Q. Explain Maximising revenue method? In a number of cases, a firm's demand and cost conditions are such that marginal profits are greater than zero for all levels of productio

Trade cycle-hawtrey views, Hawtrey views about Trade Cycle Hawtrey view...

Hawtrey views about Trade Cycle Hawtrey views trade cycle as a purely monetary phenomenon. According to him, inventory cycles result from fluctuations caused in the desired rat

Burden of the national debt, Burden of the national debt The extent of...

Burden of the national debt The extent of the burden on a nation of public debt, depends in the first place on whether it is an external or an internal debt.  The burden of th

Stable and unstable equilibrium, Stable and Unstable Equilibrium An eq...

Stable and Unstable Equilibrium An equilibrium is said to be stable equilibrium when economic forces tend to push the market towards it.  In other words, any divergence from t

Social cost and benefits, iwant presentation on united postal services on s...

iwant presentation on united postal services on social cost and benefits

Illustrate about demand theory, Illustrate about Demand theory Demand t...

Illustrate about Demand theory Demand theory is one of the core theories of consumer behaviour andmicroeconomics. It attempts at answering questions regarding the magnitude of

T, Theory of consumer behavior

Theory of consumer behavior

Leading economic indicators, Leading Economic Indicators The 11 ke...

Leading Economic Indicators The 11 key economic indicators that have been establish to lead business cycle turning points. Of the 11, four are basically used in business;

International financial institutions, INTERNATIONAL FINANCIAL INSTITUTIONS ...

INTERNATIONAL FINANCIAL INSTITUTIONS In July 1944, a conference took place at Bretton Woods in New Hampshire to try to establish the pattern of post-war international monetary

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