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.
The financial model was also used to derive sawmilling long-run average cost curves, based on varying sizes of portable sawmills. The bandsaw has the lowest milling cost for log throughput from zero to about 60 m y1, the Lewis saw from 60 m y1 to 185 m y1, the Forestmill from 185 ...
Drawatypicalfirm’s(short-run)marginalcost,averagetotalcost,averagevariablecostandmarginalrevenuecurves.Explainwhythecurveshavetheseshapes.Explainthe..
Explain the cost/benefit approach with an example. Define the various cost structures (short-run and long-run). 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. ...
The short run cost curves drawn are based on assumption that input prices are given. We offer assignment, tutoring and homework help on short run cost curves.
Explain why the long run average total cost curve initially slops downward. Why is the short-run average total cost curve of a firm 'U' shaped? Why do marginal costs or benefit curves use the midpoint of quantities? Why is it that the short-run...
The fact that many inputs are fixed in the short run but variable in the long run has little impact on the firm'scost curves.ANS: F DIF: 2 REF: 13-4 NAT: Analytic LOC: Costs of production TOP: Long run MSC: Interpretive 相关知识点: ...
Lecture28[1] short_long_run ATC Draw a typicalfirm’s(short-run)marginal cost,average total cost,average variable cost and marginal revenue curves.Explain why the curves have these shapes.Explain the relationship between marginal cost and average total cost curves.Draw the marginal cost,average ...
It is shown that such prices not only optimize short-run mobility, given the shape and position of the relevant demand and cost curves, but even more importantly, also optimally affect the factors determining the shape and position of these curves in the long run. However, first-best prices ...
EconomicEfficiency:productionofagivenamountofoutputatthelowestpossiblecost.Shortrunandlongrun –Twotypesofinputs •Fixedinput•Variableinput –Afixedinput:thelevelofusagecannotreadilybechanged.However,noinputiseverabsolutelyfixed–justinpracticalsense–Avariableinput:thelevelofusagemaybechangedquitereadily...