Explain using graphs, math and words: the relationship between technological innovation, costs and profit; including all...

 

Transcribed Image Text:

Explain using graphs, math and words: the relationship between technological innovation, costs and profit; including all the models and related materials we've covered: 1. production functions and marginal products, 2. the cost curves (MC and AC etc.), 3. the profit function (MC and MR). Illustrate where consumers are subsidized to purchase within each of your three graphs. Finally; explain the impact of the shock on both producers and consumers in terms of their surpluses. Explain using graphs, math and words: the relationship between technological innovation, costs and profit; including all the models and related materials we've covered: 1. production functions and marginal products, 2. the cost curves (MC and AC etc.), 3. the profit function (MC and MR). Illustrate where consumers are subsidized to purchase within each of your three graphs. Finally; explain the impact of the shock on both producers and consumers in terms of their surpluses.

Answer rating: 100% (QA)

To explain the relationship between technological innovation costs and profit lets consider three key concepts production functions and marginal products cost curves and the profit function We will us... View the full answer