Constant Cost

What is the significance of the information that this is an constant cost industry? What assumption gives rise to a U shape Long run Average cost curve and Short run Average cost curve for the firm?

Economic Determinant

What assumption concerning economies of scale will give rise to a determinant and optimal scale of the firm in Long run equilibrium in perfect competetion?

Marginal Product of input

Assume 3 inputs Capital (K), Labor (L) and Land(N). What cost curve tells you for each level of output, the minimum per unit cost of producing that level of output? What must be true of the relationship between the marginal product of inputs and prices of inputs at each point?

Economic problem

Suppose there is a water project, in where $100,000,000 has been spent. Additional cost is needed is $200,000,000. When completed the project will yield total $150,000,000. There is an argument when the project should completed. Otherwise the first $100,000,000 will have been wasted. What comment and recommendation is needed for the project

Lon Run Average cost curve

I. What assumption gives rise to a U-shaped long run average cost curve for the firm? (Describe shortly) II.What ways firms in on oligopoly try to elminate or control the consequences of this charcteristic?