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...
The marginal cost curve is U shaped in the short run because of the law of diminishing returns. At this stage, the total cost as well as variable cost... See full answer below.Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question ...
Why must a monopolist that is price discriminating take steps to prohibit resale? Why is the monopolist willing to spend to protect the market position? In the short run, why does marginal cost decrease, then increase? Why is marginal cost and average cost the same in a perfec...
First, deviations of the growth rate from its long-term average cannot be endogenously realised. To generate an initial deviation, we would have to rely on an ‘MIT shock’: a sizeable and unexpected one-time shock to the system that is entirely external to the model in the sense that ...
Normal distributions (the familiar bell-shaped curve) dictate that the expected return of the investment may be one standard deviation from the average 67% of the time and two standard deviations from the average deviation 95% of the time. ...
Normal distributions (the familiar bell-shaped curve) dictate that the expected return of the investment may be one standard deviation from the average 67% of the time and two standard deviations from the average deviation 95% of the time. ...
Pu-erh can get expensive. Since the tea is formed into a compressed shape, you have to buy it in fixed amounts. Small nest-shaped tuo forms are usually 100 or 250 grams, and cakes, the most common form, are over three quarters of a pound. While many vendors offer smaller samples of...
Tiago is one of my closest friends and the person who shaped my career more than anybody else. David and Tiago also sometimes get together for a podcast episode to reflect on their work and learnings as business partners. 8. Vedika Bhaia and Unnati Bagga: joint course Vedika Bhaia is a...
Why does the average cost decrease as the quantity produced increases? Why isn't the supply curve U- shaped if it represents the marginal costs to producers? Explain why managers are interested in the concept of consumer surplus? Why is it important for an entrepreneur to know the elasticity ...
The future of financial inclusion is likely to be shaped by advancements in fintech, such as artificial intelligence, blockchain, and digital currencies. Additionally, greater emphasis on data privacy and security, along with regulatory developments, will influence the trajectory of financial inclusion ...