If the long-run marginal cost curve is-shaped, must the long-run average cost curve also be-shaped?
Answer to relevant QuestionsWhat is the significance of a tangency between an isoquant and an isocost line? In Table 9.1, suppose that variable input prices increase by 50 percent. Will the firm’s profit-maximizing output level change? Illustrate your answer with a graph.In a constant-cost industry each firm’s MC curve is upward sloping, yet all the firms together—the industry—have a hor-zontal supply curve. Explain why there is no contradiction.Suppose that the low-skill job market is perfectly competitive and that the equilibrium wage and monthly output in the market absent government interference are $ 4.50 per hour and 1,000,000 hours, respectively. Assume that ...If bad weather causes the supply of sugar in RoW to fall, how will this affect the U. S. market if the import quota described by Figure is in place? Does this explain why the U. S. and world prices can differ greatly from ...
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