Homework questions Custom Essay

2. In your own words, explain the law of diminishing marginal productivity. Be sure
to mention the reason this law tends to hold in the short run.

4. Discuss the relation between the marginal and average productivity curves and the
marginal and average variable cost curves.

5. What does the elasticity of substitution illustrate? How is it expressed mathemati-
cally? What two factors affect its magnitude?

6. Explain the difference between the explicit and implicit costs of production. Cite
an example of each.

7. Suppose that with 400 patients per year, the SAFC, SATC, and SMC of operating a
physician clinic are $10, $35, and $30 per patient, respectively. Furthermore,
suppose the physician decides to increase the annual patient load by one more
patient. Using short-run cost theory, explain the impact of this additional patient
on the SAVC and SATC. Do they increase or decrease? Why?

10. What does economies of scope mean? Provide an example.

12. You are responsible for hiring one of two hygienists for a dental office. The first
dental hygienist has 25 years of experience. Given her record, he is likely to
satisfactorily service 16 patients per day. Her hourly wage would be approximately
$16 per hour. The other hygienist is new to the industry. He is expected to
satisfactorily service 10 patients per day at an hourly wage of $8. Which dental
hygienist would be the better hire? Why?

14. Draw a U-shaped LATC curve. Then draw the related long-run marginal cost
(LMC) curve, keeping in mind the geometric relation between marginal cost and
average cost (see the discussion on short-run cost curves). What is the relation
between LATC and LMC when increasing returns to scale are present? Between
LATC and LMC when the production process exhibits decreasing returns to scale?
What type of returns to scale holds when LMC equals LATC?

16. Suppose that you are interested in comparing the costs of producing inpatient ser-
vices at Saving Grace Hospital with those at ACME Hospital. Further suppose that
the two hospitals annually admit about 24,000 and 32,000 patients, respectively, at
average STCs per admission of roughly $11,000 and $12,000.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Uncategorized