This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the shape of a firm's marginal revenue product curve? Why does it look this way? What ... (Read 90 times)

neverstopbelieb

  • Hero Member
  • *****
  • Posts: 534
on: Jun 29, 2018
What is the shape of a firm's marginal revenue product curve? Why does it look this way?
 
  What will be an ideal response?

Question 2

Cassie's Quilts alters, reconstructs, and restores heirloom quilts. Cassie has just spent 800 purchasing, cleaning, and reconstructing an antique quilt which she expects to sell for 1,500 once she is finished.
 
  After having spent 800, Cassie discovers that she would need some special period fabric that would cost her 200 in material and time in order to complete the task. Alternatively, she can sell the quilt as is now for 900. What is her marginal benefit if she sells the quilt as is now?
  A) 100
  B) 900
  C) She makes a marginal loss of 600, not a marginal benefit.
  D) The marginal benefit cannot be determined.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

missalyssa26

  • Sr. Member
  • ****
  • Posts: 327
Reply #1 on: Jun 29, 2018
Answer to Question 1

The firm's marginal revenue product curve is downward sloping like the marginal product curve. The shape occurs as a result of diminishing returns in the short run.

Answer to Question 2

B


neverstopbelieb

  • Member
  • Posts: 534
Reply 2 on: Jun 29, 2018
:D TYSM

xiazhe

  • Member
  • Posts: 331
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Shape of a tonsil. Shape of a tonsil.
Neck stretch. Rest the receiver’s head on the palm of your right hand, taking a firm hold on the ... Neck stretch. Rest the receiver’s head on the palm of your right hand, taking a firm hold on the ...
Unregulated populations "J-shaped curve" Unregulated populations "J-shaped curve"
Find derivative using product rule Find derivative using product rule
Typical bacterial population growth curve showing the initial lag phase Typical bacterial population growth curve showing the initial lag phase
Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ... Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ...
Video: Appendicitis Animation

For a complete list of videos, visit our video library