I’m trying to study for my Micro Economics course and I need some help to understand this question.
Q5. The Law of Diminishing Returns
Another important law in economics is the “law of marginal returns or the law of increasing costs”. Discuss in terms of your study in this course, how might you know that you are at a point of diminishing returns, or where more study will not benefit you like it did before? Can you identify any of the costs discussed in this lesson in your decision about how much study is enough?
Q6.Profits and the Shut Down Decision
Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development? What kinds of costs are involved in making a decision to shut down?
Q7.Pricing and Competition
How would a low-cost price leader enforce its leadership through implied threats to a rival? How does a firm become a “low cost” price leader? Discuss the specific type of market structure that implied threat strategy can be adapted.
Q8. Course Reflection
We’ve covered quite a bit of ground over the last several weeks and I hope you all now have a better understanding of microeconomics. For this week’s discussion, I’d like you to reflect on what you’ve learned and answer the following questions:
Did you find the subject to be more applicable to your everyday life than you expected?
What surprised you the most of the content in this course?
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