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January 20, 2023

Economics Marginal Cost of Production

UJ Economics Marginal Cost of Production Questions
Explain why the marginal cost of production must increased if the marginal product of the marginal resource is decreasing.
– Define productivity efficiency and allocative efficiency. What conditions must be met in order to achieve them?
– How is the demand for lumber affected by the demand for housing?
– Define market power, and then discuss the rationale for government regulation of firms with market power.
– Explain the difference between fixed-production technology and variable technology. Should the government set a goal of reducing the marginal social cost of pollution to zero in industries with-fixed production technology? Should they do that in industries with variable technology?
– What is the Lorenz curve? What does the Lorenz curve in Exhibit 2 illustrate?

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