“Every point on Ford’s long-run cost curve corresponds to a point on some short-run cost curve, but not every point on one of Ford’s short-run cost curves corresponds to a point on the long-run cost curve.” Explain.
Answer to relevant QuestionsSuppose that Marriott’s production function is characterized by constant returns to scale at all output levels. What will the firm’s long- run total, average, and marginal cost curves look like?Why do we assume that the prices of inputs are constant when we draw a firm’s cost curves? How does a change in the price of an input affect the AC and MC curves?How would each of the following phenomena affect the long-run supply curve of apples? a. Workers in the apple industry form a union. b. Consumers find out that apples cause cancer. c. Hard-to-control bugs that eat apples ...What is producer surplus? What is consumer surplus? What is total surplus? Explain how each is shown in a supply and demand graph. Ghana is a producer and exporter of crude oil. Since Ghana is a relatively small crude-oil-producing country, its actions do not affect world prices; as an exporter, Ghana faces a foreign demand curve that is perfectly ...
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