Discuss the implications of the cost function, average cost, and marginal cost

Explain market equilibrium, and identify the equilibrium point on a supply–demand diagram.
December 25, 2020
Was the airline more likely to cancel flights that tended to be filled to capacity, or ones that typically flew partly empty? Explain
December 25, 2020

1.       Explain and apply the economic perspective on business operations.

2.       Define and apply the production function, average product, and marginal product.

3.       Discuss the implications of the cost function, average cost, and marginal cost. Explain the difference between variable costs and fixed costs.

4.       Define and apply the revenue function and marginal revenue.

5.       Determine the profit-maximizing level of output.

6.       A business has revenues of $40 million per month and costs of $28 million per month. Its monthly profits are _______ (LO4-1) a) $12 million. b) $36 million. c) $68 million. d) $144 million.

7.       Some hospitals and private universities are nonprofit organizations. This means _______  a) their costs exceed their revenues. b) they do not seek to maximize their profits. c) they try to maximize revenues. d) they do not try to minimize costs.