Economics of production

Production of wheat depend upon various inputs such as Land, Labour and Capital that leads to the output. As a producer, one will calculate how much of land and labour or other factors are required to produce the given quantity of a commodity (wheat). Production function helps us study the functional relationship between physical inputs and physical output of a commodity. It is purely a technical relation which carries factor inputs and output. Y=f(X1, X2) Y: maximum possible output of a commodity

microeconomic impacts of the National Broadband Network (NBN). This report also explains how NBN will help businesses to implement innovative and efficient business processes to increase revenues, competitiveness and productivity that will further drive the economic growth of Australia. The report will briefly compare the impacts of NBN to financial services sector in Australia and how financial services sector can benefit from the implementation of NBN in long run. This report aims to cover the supply side

Economics Firm: Organisation that brings together FOP (land, labour, capital, entrepreneurship) to product goods and services for sale Industry: group of firms that produce a single g/s (or related) Explicit costs: payment made to outside suppliers of inputs e.g. salaries/wages, raw material, overhead costs implicit costs: do not involve direct payment of money, sacrifice of some alternative e.g. salary forgone/interest forgone (factors are already owned by firm) accounting

operating unit where production takes place. This production can be manufacturing, farming, mining, retailing, wholesaling, warehousing—anything, in short, necessary for the production and distribution of goods and services. A firm is the business organization that owns one or more plants. A firm can be very large, such as General Motors, which owns many plants in many

The shape of the production possibility frontier (PPF) of a country depends on: (1) its factor endowments and (2) the production functions of the various commodities. The plausible shapes of the production possibility frontier include: Linear Suppose there are constant returns to scale in both industries and only one factor, then the production possibility frontier is a straight line. If the opportunity cost is constant as production of different goods is changing, then

BUECO5903 BUSINESS ECONOMICS ASSIGNMENTS A Semester 1, 2013 Due dates for each section are provided in the Course Description. Part A – Microeconomics – Worth 10% of total assessment: Answer any five (5) of the following questions. Each question is worth 10 marks; Question 1: (a) Explain the impact of external costs and external benefits on resource allocation; (2.5 marks) Ans : Resources are over - allocated when negative externalities exist because the equilibrium price is too low.

His total cost equaled $286,000 last year. Hence Chuck's a. total variable cost was zero. b. incurred an economic loss. c. total variable cost equaled $200,000. d. total variable cost equaled $372,000. e. None of the above answers is correct. ____ 14. If Melissa owns a software company that incurs no fixed costs, then a. her total cost equals her total variable cost. b. she will earn an economic profit. c. her total variable cost is less than her total cost. d. her total cost equals zero. e. her marginal

The study of economics is a vas field including many formulas and eqagions that help us better understand the worlds markets. Economics is not only used in the life of thoses who study it but by everyone shopping or selling goods wheater they are aware of it or not. The study of economics has advanced throughout the years by economist such as karl marx, adam smith, david ricardo, john maynard Keynes and many other individuals that has dedicated their life to not only the advancement of science but

versus Economic Profits Business profit or accounting profit is simply the net income of a company (total revenue minus total expenses), however an economic profit is a tougher profit to achieve. This is because it takes into account the missing investment opportunities. For example, if investment option A generates a 50% return while investment option B only generates 10% and option A was chosen exclusively: the business profit would simply be that of option A (50%) while the economic profit would

For a firm to shut down in the short run, the average variable cost can avoid paying by shutting down exceed the price it would get for selling the good (Colander, pg. 328). At a certain point to continue producing and selling goods would get higher than the fixed costs of not producing the goods or service. As the text mentions, automakers will continue to produce at a loss because the labor is a fixed cost due to union agreements. These agreements state that the workers will get paid if they are