Article Writing Homework Help

Complete 6 pages APA formatted article: Macroeconomics and Microeconomics. For example, when a 20% increase in vehicles results from a 20% increase in investment on manufacturing equipments, then the firm could be experiencing constant returns to scale. Question three Economic profit refers to the difference between total revenue and opportunity cost. For instance, Pesso invests $1,000 to begin a business in a particular year which she earns $1,200 in profits. But if she had not begun the business she could have earned a salary of $4,500. In such a case, the economic loss is $250 (1,200 – 1000 – 450). Question four Law of diminishing marginal returns states that as new workers continue to increase, the marginal product of any additional worker will at some instant be lower than that of the previous worker. For instance, if a company employs workers to produce its commodities, at some point in time each additional worker will provide lower output than the previous worker, if all other factors remain unchanged. Question five Marginal product of labor refers to the change in output resulting from hiring an additional worker. For example, if a pizza restaurant with three employees makes 100 pizzas in a day and 120 pizzas with four employees, the marginal product of labor is 20 pizzas (120 – 100).