1. Give a brief summary of economic costs.

In this assignment, please review the reference material:

In a 4-5 page essay, address the following questions:

1. Give a brief summary of economic costs.

2. Suppose a firm is operating at the minimum point of its short-run average total cost curve, so that marginal cost equals average total cost. Under what circumstances would it choose to alter the size of its plant? Explain.

3. In the short-run, why might a firm still operate even when there is a loss?

4. Suppose a firm is producing 1,000 units of output (Q). Its average fixed costs are $100. Its average variable costs are $50. What is the total cost (TC) of producing 1,000 units of output (Q)? It the price (P) of the good is $200, what is total revenue? What is total profit?

Case Assignment Expectations:

Use concepts from the modular background readings as well as any good quality resources you can find from the cyberlibrary or other internet search engines. Pleas be sure to cite all sources within the text and provide a reference list at the end of the paper.

Length: 4-5 pages double spaced and typed.

The following items will be assessed in particular:

Your ability to understand the relationship between costs and production.

Some in-text references to the modular background material (APA formatting not required).

The essay should address each element of the assignment. Remember to support your answers with solid references including the case readings.

Module 4 SLP

Profits and Your Franchise Firm

In this module, we have explored the costs of production which have a direct impact on the profit of your firm. Please write an essay that addresses the following questions.

1. How do firms benefit from economies of scale?

2. What might be some potential disadvantages of being part of a large corporation?

3. Suppose business is booming at your firm. It is contemplating adding more capital, but the day supervisor suggests simply hiring more workers. How should you decide which alternative to pursue?

SLP Assignment Expectations:

Use concepts from the modular background readings as well as any good quality resources you can find from the cyberlibrary or other internet search engines. Please be sure to cite all sources within the text and a reference list at the end of the paper.

Length: 2-3 pages double spaced and typed

The following items will be assessed in particular:

Your ability to explain how different economies vary in production.

Some in-text references to the modular background readings (APA formatting not required).

The essay should address each element of the assignment. Remember to support your answers with solid references.