Questions On Economics

Submitted By brendanmurphy4
Words: 585
Pages: 3
Open Document
1. The relationship between a firm's total revenue, profit, and total cost is profit equals total revenue minus total costs. 2. An accountant would not count the owner’s opportunity cost of alternative employment as an accounting cost. An example is given in the text in which Helen runs a cookie business, but she could instead work as a computer programmer. Because she's working in her cookie factory, she gives up the opportunity to earn $100 per hour as a computer programmer. The accountant ignores this opportunity cost because money does not flow into or out of the firm. But the cost is relevant to Helen's decision to run the cookie factory. 3. Marginal product is the increase in output that arises from an additional unit of input.
Diminishing marginal product means that the marginal product of an input declines as the quantity of the input increases. 4. Figure 4 shows a production function that exhibits diminishing marginal product of labor.
Figure 5 shows the associated total-cost curve. The production function is concave because of diminishing marginal product, while the total-cost curve is convex for the same reason. 236  Chapter 13/The Costs of Production

Figure 4 Figure 5

5. Total cost consists of the costs of all inputs needed to produce a given quantity of output. It includes fixed costs and variable costs. Average total cost is the cost of a typical unit of output and is equal to total cost divided by the quantity produced. Marginal cost is the cost of producing an additional unit of output and is equal to the change in total cost divided by the change in quantity. An additional relation between average total cost and marginal cost is that whenever marginal cost is less than average total cost, average total cost is declining; whenever marginal cost is greater than average total cost, average total cost is rising.

Figure 6 6. Figure 6 shows the marginal-cost curve and the average-total-cost curve for a typical firm. It has three main features: (1) marginal cost is rising; (2) average total cost is U-shaped; and
(3) whenever marginal cost is less than average total cost, average total cost is declining; whenever marginal cost is greater than average total cost, average total cost is rising.
Marginal cost is rising for output greater than a certain quantity because of diminishing returns. The
Show More

Related Documents: Questions On Economics

The Ku Klux Klan

Ku Klux Klan It has been aurally perceived and verbalized about throughout history, that there was never subsistence of "The" Ku Klux Klan. There is traceable evidence of different forms of kineticism and organizations that have utilized this designation. The history of the K.K.K. interacts with the history of race cognations from our country. The Klan can be divided into five different eras: The Reconstruction, The Terminus of the War (& Pulaski Six), The Klan Mobilization, The Reign of Terror,…

Words 1289 - Pages 6

Ku Klux Klan Essay

The Ku Klux Klan Starting in 1921, the Ku Klux Klan (KKK) began their terrible acts, they were a white supremacist group, believing that all non-Caucasian people are inferior and that they have no place In the US because they believe that it’s the true home to white Christians. The KKK was a horrendous racist organization; they tortured people, fought for superiority and targeted many African-Americans because they think of themselves as superior. They changed a lot of people’s beliefs during this…

Words 735 - Pages 3

Ku Klux Klan Legacy

The Legacy Lives On The Ku Klux Klan’s legacy has greatly shaped the course of the modern world. Most kids and adults today are aware of the horror that was caused by the KKK. However since that time many things have changed for the better. Many laws that were put in place to stop racism would not exist, we would be further advanced in terms of accepting and appreciating other races and some tragedies like riots or massacre would not have occurred. Walking on the streets you are faced with racists…

Words 560 - Pages 3

Ku Klux Klan Analysis

Within this article it seems that Evans fully supports the KKK their ideology, it can be argued he presents himself as a spokesperson for the Klan and explaining their ideas. His point of view is very much similar to that of the Klan in the views that white protestants are the superior race in the world with no other race comparing. His view is that white protestants are the supreme race. Evans wrote this article in 1926 in America, this time was seen as highly important in America in regards to…

Words 946 - Pages 4

Essay Ku Klux Klan

the Ku Klux Klan used many different ways to intimidate blacks in the South (Foner and Garraty 1). The first arose was a movement of white Southerners to stop the newly freed African Americans from exercising their rights of citizenship with threats and terror, including murder. The KKK was a secret society and its members burned crosses and wore hood like masks (Daniels 1). The Ku Klux Klan was a racist group of people that wanted segregation between blacks and whites. The Ku Klux Klan became…

Words 485 - Pages 2

Ku Klux Klan Analysis

Kaitlin Coursey Ku Klux Klan Response Throughout this packet I noticed several different aspects and opinions on how the South would be treated due to the fact that the North was now in control. This was a fear for many southerners as they were weary and tense due to their past actions. Many southerners were very afraid and angry towards the North and made rude assumptions as to how and if they would try to reconstruct the South to better fit them, and not the southerners. There were some…

Words 652 - Pages 3

Ku Klux Klan Research Paper

The Ku Klux Klan The Ku Klux Klan was members formed together that directed violence and intimidation towards black and white leaders. The Klan was founded in 1866 and extended into almost every southern state. The Ku Klux Klan is a secret hate group in the southern U.S. an was active for several years after the civil war. The Ku Klux Klan dedicated themselves to an underground campaign of violence against republican leaders and voters in effort to reserve the policies of radical reconstruction…

Words 597 - Pages 3

Downfall of the Ku Klux Klan Essay

Founded around the late 1860s, the Ku Klux Klan was an organization that was created by a few Confederate veterans as a social club in a small town in Tennessee. The Klan began its second phase of post- Civil War Reconstruction which was placed by the more radical Republican Party in the Congress. Under the provision of the Reconstruction Act, the South was divided into five different military districts which involved each state having to approve the 14th Amendment provided that there will be “equal…

Words 2533 - Pages 11

Ku Klux Klan Research Paper

Confederate soldiers in 1866, the Ku Klux Klan was a repetitive protest to American ideals of equality and has greatly influenced different time periods in history. The first appearance came after the end of the Civil War. The Ku Klux Klan would reign terror against African Americans to establish white supremacy in the South. President Ulysses S. Grant got Congress to pass the Enforcement Act in 1871, making Klan violence punishable under federal laws. The Ku Klux Klan disappeared almost completely,…

Words 511 - Pages 3

Ku Klux Klan And The Reconstruction Era

the Ku Klux Klan, formed its roots in the southern states shortly after the American Civil War during the time period known as the Reconstruction Era. This Reconstruction Era was the idea of the nation working together in order to put the United States back to its previous state that it was before the war began. Abraham Lincoln’s goal was to join the nation as one now that it had officially prohibited slavery in the United States (Howard). As a secretive clan of brothers the Ku Klux Klan wanted…

Words 1431 - Pages 6