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a) What is meant by production technologies, and how does it relates to producing a particular amount of output in the long-run? How do firms decide which production technology to use in the long-run?
(b) Characterize what will cause long-run costs to increases, decrease, or remain unchanged.
(c) Graph and explain how a firm's long-run average total cost (LRATC) curve is related to its various short-run average total cost curves (using various production technologies).
(d) Identify the areas of economies of scale, constant returns to scale, and diseconomies of scale.
(e) How does the shape of the LRATC determine the size of firms that will compete in the market place in the long-run? Contrast markets containing firms with a clear minimum point on their LRATC from those with a flat-bottomed LRATC curve.
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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