Solution-Draw a representative long-run average cost curve

Draw a representative long-run average cost curve

Reference no: EM13889092

Industry studies often suggest that firms may have long-run average cost curves that show some output range over which there are economies of scale and a wide range of output over which long-run average cost is constant; finally, at very high output, there are diseconomies of scale.

a. Draw a representative long-run average cost curve, and indicate the minimum efficient scale.

b. Would you expect that firms in an industry like this would all produce about the same level of output? Why?

Reference no: EM13889092

Questions Cloud

What are the total product costs for the company : The Rock Company produces basketballs. It incurred the following costs during the year. What are the total product costs for the company under variable costing?

Do you think it was the right decision for hotel : Do you think it was the right decision for Hotel International (HI) to take over the management of RDH? Why or why not? Paul Fortune was appointed to begin the transition from a Chinese managed SOE to management by HI

Calculate the average annual rates of productivity growth : Productivity growth measures increase in output per hour of work. Output per hour of work was 54.0 in the first quarter of 1973, 75.4 in the first quarter of 1996, and 111.0 in the first quarter of 2010 (2005=100). Calculate the average annual rates ..

Bond-stock financing-deciding how to finance the expansion : Kim owns all 100 shares of common stock in GBZ Co. She has decided that she needs to raise $10,000 in new capital this year. She is trying to decide between two alternatives that are open to her. One is to issue a $10,000 bond, paying 10 percent inte..

Draw a representative long-run average cost curve : Industry studies often suggest that firms may have long-run average cost curves that show some output range over which there are economies of scale and a wide range of output over which long-run average cost is constant; finally, at very high out..

Compute the break-even point in dollars for each company : Presented below are variable costing income statements for Logan Company and Morgan Company. Compute the break-even point in dollars for each company and comment on your findings.

Construct an analogy for how science works : Construct an analogy for how science works and use the chosen video to illustrate your analogy and particularly improvements that increase the quantitative nature of the video

Explain-are hamburgers normal or inferior good : Steve’s preferences for hamburgers (X) and chicken sandwiches (Y) can be represented by u(X,Y)=X 0.5Y 0.5. Graphically decompose the total effect of the price change into an income effect and substitution effect. Plot hamburger consumption on the hor..

How much income must he report for tax purposes : On September 30, Silver Corporation, a calendar year taxpayer, sold a parcel of land (basis of $400,000) for a $1 million note. The note is payable in five installments, with the first payment due next year. Sam, the sole shareholder of Silver, has a..

User Account

All Pages

Draw a representative long-run average cost curve

Reference no: EM13889092

Reference no: EM13889092

Questions Cloud

Reviews

Write a Review

Microeconomics Questions & Answers

Compute equilibrium price and quantity that would prevail

Find the profit maximizing way to allocate minutes

How an american buys a share of german stock transactions

Describe what would happen in market in term of supply curve

What are the advantages of wage rate subsidies

Marginal cost schedule for produc- ing pulp

The effect of the law diminishing returns

Incomes on two goods-food and clothing

Should the united states worry about high-tech competition

Briefly analyze in terms of supply and demand the effects

What happens to output - income

Write the demand equation resulting from your output

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT