Long-run average cost curve (LAC) The long-run average cost curve depicts the cost per unit of output in the long run. All points on the line represent least-cost factor combinations; points above the line are attainable but unwise, while points below are unattainable factors of production....
Learn what is the average total cost. Learn its use, its formula, and how to apply it. Related to this Question With the help of a diagram, explain the short-run and long-run cost curves, with explanation to justify the U-Shape of the curve. ...
1. Explain why the marginal cost curve must cross the average cost curve at the minimum of the average cost. Consider the following production function: f(L,K) = (L^{1/2}+ K^{1/2})^2...
Since we’re multiplying numbers less than 1, they always tend towards 0, and we end up with a lot of gray. Average looks like Add but grayer, because that’s exactly what it is: (a + b) / 2. Strangely libnoise doesn’t include this operator, so I implemented it myself for demo...
Statement 1: One reasong why perfect competition is considered to be efficient is because in the long run, firms in a perfectly competitive market operate at the minimum of the average total cost (ATC) curve. Statement 2: Social...
Explain and illustrate on a diagram. Statement 1: One reasong why perfect competition is considered to be efficient is because in the long run, firms in a perfectly competitive market operate at the minimum of the average total cost (ATC) curve. Statement 2: Social ...
A perfectly competitive market with a large number of identical firms is in a long run equilibrium, where the price is equal to the minimum of the average cost curve. Firms have an upward sloping marg "In the long run, ...
A. On average, people in a country decide to increase the number of hours they work by 5%. B. Spending on homeland security increases in Which of the following could cause nominal GDP to increase, but real GDP to decrease? ___...