Answer and Explanation: Become a Study.com member to unlock this answer! Create your account View this answer Long-run average total cost curves are U-shaped mainly because of economies of scale, constant returns to scale, and diseconomies of scale. Economies... See full an...
In Fig. 19.7, we have drawn the long-run average cost curve as having an approximately U-shape. It is generally believed by economists that the long-run average cost curve is normally U shaped, that is, the long-run average cost curve first declines as output is increased and then...
Long-run Average Total Cost curves are "U" shaped because of Diminishing Marginal Returns. True or False? Consider a firm with U-shaped MC, AVC, and ATC curves. The firm will never produce at the downward part of the MC curve. Is this statement true or false...
Cost curves are graphs of how a firm’s costs change with change in output. Economists draw separate curves for short-run and long-run because firms have higher flexibility in selecting their inputs in the long-run.Differentiating between short-run and long-run cost curves is important because...
These short-run average cost curves are also called plant curves, since in the short run plant is fixed and each of the short-run average cost curves corresponds to a particular plant. In the short run, the firm can be operating on any short-run average cost curve, given the size of ...
The average cost curves for both the short-run and the long-run time horizons can be U-shaped, but for quite different reasons. Name the reasons the AC can be U-shaped in the short-run. (Refer to 3 se In the long run, total fixed...
there may not be a one-size-fits-all approach because each country will face different challenges in the process of designing an optimal energy policy. The members of the OECD are mainly advanced countries, and they may share similarities in terms of their economic growth and development progress...