Question
a-What do you notice about the evolution of marginal cost in the short term?b-For what levels of production does this company experience diseconomies of scale?
a-What do you notice about the evolution of marginal cost in the short term?b-For what levels of production does this company experience diseconomies of scale? Explain.c-What is the level of production so that the profit of this company is maximum in the short term? Explain.d-Calculate the amount of profit for the level of production determined in the previous question. Explain.e-Determine the market price of good B. Explain.f-Explain why we consider, in this exercise, that the price is fixed.g-What happens to the quantity produced by this firm when the market price decreases? Explain.h-In the long term, what will become of the economic profit of this company? Explain.
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