Show mathematically that for any upward sloping srmc

Assignment Help Business Economics

Reference no: EM13737839

a) Show mathematically that for any upward sloping SRMC, SRATC is strictly convex, crosses the SRMC curve at the lowest point on the SRATC curve, and the SRMC curve is rising at that point.

b) Show mathematically that for any U-shaped SRMC, SRAVC is strictly convex, SRAVC crosses the SRMC curve at the lowest point on the SRAVC curve, and the SRMC curve is rising at that point.

c) Why would a firm shut down at price below minimum SRATC rather than minimum SRAVC if its fixed costs of production were avoidable?

Reference no: EM13737839

Questions Cloud

Describe the extent of economic integration : Describe the extent of economic integration, specifically mentioning the country’s membership(s) within regional trade agreements and the benefits they bring to the country.

What two oligopoly models might offer an explanation : When an automaker begins offering low cost financing or rebates, others tend to do the same. What two oligopoly models might offer an explanation of this behavior? Fast-food restaurants tend to cluster together. That is, on one corner, there might be..

Command-and-control environmental laws : In the U.S., the command-and-control environmental laws of the early 1970s, together with the ensuing amendments and updates that have been made to them over time,

The average total cost curve must be rising : The Average Total Cost curve must be rising. The Average Total Cost curve must be below the Marginal Cost curve. The Average Total Cost curve must be above the Marginal Cost curve.

Show mathematically that for any upward sloping srmc : Show mathematically that for any upward sloping SRMC, SRATC is strictly convex, crosses the SRMC curve at the lowest point on the SRATC curve, and the SRMC curve is rising at that point.

What is the fair price of this investment : An investment pays $2,100 per year for the first 3 years, $4,200 per year for the next 8 years, and $6,300 per year the following 12 years (all payments are at the end of each year). If the discount rate is 8.75% compounding quarterly, what is the fa..

Minimum monthly payment : Suppose you owe $1400 on your credit card. The APR is 12%, compounded monthly. The credit card company says your minimum monthly payment is $20.84.

Assume the market for bagels is in equilibrium : Assume the market for bagels is in equilibrium.

What is the effective interest rate and the apr : Some lenders charge an up-front fee on a loan, which is subtracted from what the borrower receives. This is typically described as "points" (where one point equals 1% of the loan amount). The federal government requires that this be accounted for in ..

User Account

All Pages