Explain the shape of the long-run average cost curve. What does minimum efficient scale mean?

Question:

Explain the shape of the long-run average cost curve. What does “minimum efficient scale” mean?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics A Contemporary Introduction

ISBN: 978-1111415921

9th edition

Authors: William A. McEachern

See More Books

Question Posted: Dec 12, 2015 05:21 AM

See More Questions

A: Suppose you have a homothetic production technology and you face input prices (w,r). (a) On a graph with labor on the horizontal and capital k on the vertical axis, illustrate a ray along which...
A: Consider a firm whose technology has decreasing returns to scale throughout and who faces a recurring fixed cost. Denote the level of capita chosen in the long run at the lowest point of the long...
A firms long-run total cost function is C = 360 + 40Q + 10Q2. a. What is the shape of the long-run average cost curve? b. Find the output that minimizes average cost. c. The firm faces the fixed...
In Exercises 8486, use a graphing utility to graph f and g in the same [-8, 8, 1] by [-5, 5, 1] viewing rectangle. In addition, graph the line y = x and visually determine if f and g are inverses....
A business entity has four equal owners. Its taxable income before the cost of certain fringe benefits paid to owners and other employees is $400,000. The amounts paid for these fringe benefits are...
The partnership of Du, Chong, and Quing has experienced operating losses for three consecutive years. The partners, who have shared profits and losses in the ratio of Jia Du, 10 percent, Denis Chong,...
For a random sample of n = 25, find the probability of a sample mean being less than 100 or greater than 102 when = 100 and = 4.5. The population mean and standard deviation are given. Find the...
On January 1, 2017, Nicks Corporation issued $250 million of floating-rate debt. The debt carries a contractual interest rate of "LIBOR plus 5.5%," which is reset annually on January 1of each year....
Sudoku is a fun little logic puzzle where the objective is to fill a 9x9 grid with digits so that each column, each row, and each of the nine 3x3 sub-grids contain all digits from 1 to 9. Solving one...
Table 3.1 in Chapter 3 presents financial statements over the period 2014 through 2017 for R&E Supplies, Inc. a. Use these statements to calculate as many of the ratios in Table 2.2 as you can. b....
What types of changes could shift the long-run average cost curve? How would these changes also affect the short-run average total cost curve?
The case study states that the concession stand accounts for well over half the profits at most theaters. Given this, what are the benefits of the staggered movie times allowed by multiple screens?...
In 2017, Noah and Sophia want to make a maximum contribution to their states qualified tuition program (Code 529 plan) on behalf of their minor granddaughter, Amanda, without exceeding the annual...
A steel wire, 150 m long at 10C, has a coefficient of linear expansion of 11 x 10 /C. Give its change in length as the temperature changes from 10C to 45C.
A student has been moving house all day and has one last 50 kg box to push across a room. The student is quite exhausted and so 3)), so that after pushing the box 2.5 m horizontally the force they...
Explain the concept of speed .What are the units of speed? What does a speed of 5m/s mean?
Customers increasingly demand greater functionality, greater performance and greater reliability from their products and services. Innovation is fundamental in meeting this challenge. Long term...
A n adult person pulls his two children sitting on a sled across the ice the mass of the sled is 2 0 0 kg the coefficient of static friction between the sled and ice is . 2 2 if the adult exerts a...
In Exercises 7176, find each limit. f(x, y) = y(y + 1) (a) lim 0 (b) lim y f(x + x, y) - f(x,y) f(x,y + y) - f(x,y)
If your school has a subscription to the FASB Codification, go to aaahq.org/ ascLogin.cfm to log in and prepare responses to the following. (a) What is the stock dividend? (b) What is a stock split?...
How has privatization contribute to productivity?
Why is the birth rate in low-income countries higher than in high income countries?
Why is agricultural productivity in developing countries usually so low?
Identify one type of business and describe that business and it's lending needs. Then describe what their potential lending needs may? Manufacturing Retail Wholesale Service Construction
Many investors believe the slope of yield curve is a leading economic indicator. Do you agree? Why? https://home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics?
Analyze the process for monitoring claims data for detecting potential fraud and abuse and describe how it is a crucial financial management process?

Explain the shape of the long-run average cost curve. What does minimum efficient scale mean?

Question:

Step by Step Answer:

The shape of the longrun average cost curve is related t...View the full answer

Microeconomics A Contemporary Introduction

Students also viewed these Economics questions