Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Which of the following are short-run and which are longrun adjustments? LO1 a. Wendy's builds a new restaurant. b. Harley-Davidson Corporation hires 200 more

image text in transcribed

1. Which of the following are short-run and which are longrun adjustments? LO1 a. Wendy's builds a new restaurant. b. Harley-Davidson Corporation hires 200 more production workers. c. A farmer increases the amount of fertilizer used on his corn crop. d. An Alcoa aluminum plant adds a third shift of workers. 2. A firm has fixed costs of $60 and variable costs as indicated in the table at the bottom of this page. Complete the table and check your calculations by referring to problem 4 at the end of Chapter 10. LO3 a. Graph total fixed cost, total variable cost, and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves. b. Graph AFC, AVC, ATC, and MC. Explain the derivation and shape of each of these four curves and their relationships to one another. Specifically, explain in nontechnical terms why the MC curve intersects both the AVC and the ATC curves at their minimum points. c. Explain how the location of each curve graphed in question 3b would be altered if (1) total fixed cost had been $100 rather than $60 and (2) total variable cost had been $10 less at each level of output

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Systems Audit Risk Mitigation

Authors: Mr Indulis L Svikis

1st Edition

B084DGQJJ5, 979-8607031909

More Books

Students also viewed these Accounting questions

Question

What is CERN? Why is it important to the world of science?

Answered: 1 week ago

Question

Identify how culture affects appropriate leadership behavior

Answered: 1 week ago