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How do average variable cost, average fixed cost, and marginal cost vary as production levels for a firm are increased?
Consider how short-term costs compare to long term costs. Answer the following questions and provide specific examples to support your answers:
1- are short term costs linked to just one input factor as a variable, with all other factors held constant as production increases?
2-Are long term costs linked to all in out factors changing over time? Why or Why not?
3-What does the term economics of scale mean? Explain in terms of increasing economies of scale and decreasing economies of scale.
PLEAS GIVE EXAMPLES.
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