Economics Question
1 Using Figure 1. in Class Note 2 to explain why the average cost is initially high, then goes down, and is back up again?
2 Define marginal cost
3 Use Figure 2 in Class Note 2 to describe the marginal cost for a traditional product
4 Use Figure 4 in Class Note 2 to explain why the marginal cost for an informational product such as a CD, an ebook, an ejournal, can be constant.
5 Use Figure 5 to point out the optimal production point and explain why.
6 Explain why total cost always increases .
7 Explain why the supply curve shifts upward when quantity increases .
