Question: How and why does a firms average-total-cost curve differ in the short run and in the long run?

How and why does a firm’s average-total-cost curve differ in the short run and in the long run?

Step by Step Solution

★★★★★

3.29 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

In the long run a firm can adjust the factors of production that are ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

207-B-E-M-EC (1005).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

On September 1, 201X, Dan Potter opened an auto repair shop. Here is his chart of accounts: Assets Liabilities Equity 101 Cash 201 Accounts Payable 301 Dan Potter, Capital 102 Accounts Receivable 302...

Q:

Why is the long-run average total cost curve described as an envelope curve? What is it enveloping?

Q:

The following graph shows the long-run average total cost curve for a perfectly competitive firm. Refer to points A, B, and C on the graph and identify where the firm would experience economies of...

Q:

Why does a firm often combine, for example, exports, foreign marketing, and licensing-rather than choosing only one of the above methods of operations?

Q:

. Define the following terms: total revenue, total cost, profit, explicit costs, implicit costs, economic profit, accounting profit, production function, marginal product, diminishing marginal...

Q:

7. How and why does a firms average-total-cost curve differ in the short run and in the long run? p-9875

Q:

) Sally lives in Melbourne and runs a business that sells guitars. In an average year, she receives $3.9 million from sales of guitars. Of this sales revenue, she must pay the manufacturer a...

Q:

How and why does a firms average-total-cost curve differ in the short run and in the long run?

Q:

How and why does a firms average-total-cost curve differ in the short run and in the long run?

Q:

How and why does a firms average-total-cost curve differ in the short run and in the long run?

Q:

How and why does a firms average-total-cost curve differ in the short run compared with the long run?

Q:

According to Sigmund Freud in his Civilization and Its Discontents, why does civilization inevitably cause unhappiness, how do humans try to achieve happiness or avoid suffering, and why are they not...

Q:

1. If a = (a,, a2, az), b = (b,, b2, b3), and 0 is the angle between vectors a and b, %3D a. then la x b| = %3D (in terms of 0) b. How would you determine if a and b are parallel? C. How would you...

Q:

The effect of writing off a specific account receivable is: Multiple Choice An increase in the amount of Accounts Receivable. An increase in the Allowance for Uncollectible Accounts. A reduction in...

Q:

You have the following information related to Chalmers Corporations pension plan: 1. Defined benefit, noncontributory pension plan. 2. Plan initiation, January 1, 2014 (no credit given for prior...

Q:

Tiger, Inc., a calendar year S corporation, is owned equally by four shareholders: Ann, Becky, Chris, and David. Tiger owns investment land that was purchased for $160,000 four years ago. On...

Q:

The accountant for Teresa's Dress Shop prepared the following cash budget. Teresa's desires to maintain a cash cushion of $14,000 at the end of each month. Funds are assumed to be borrowed and repaid...

Q:

In 2014, UraMin Co. completed the following transactions involving delivery trucks: July 5 Traded-in an old truck and paid $25,600 in cash for furniture. The accounting records on July 5 showed the...

Q:

On April 29, 2015, Auk Corporation acquires 100% of the outstanding stock of Amazon Corporation (E & P of $750,000) for $1.2 million. Amazon has assets with a fair market value of $1.4 million (basis...

Q:

2. Crazy Cauchy: The Cauchy distribution (aka a t distribution with one degree of freedom) is outlier prone (extremely heavy tailed). In R, Cauchy random variables can be simulated using rcauchy()....

Q:

10. How are inflation and unemployment related in the short run?

Q:

1. Describe some of the tradeoffs faced by the following: a. a family deciding whether to buy a new car b. a member of Congress deciding how much to spend on national parks c. a company president...

Q:

2. You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, forgone wages) are measured in dollars, but the benefits of the vacation are psychological....

Q:

Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: All cash flows will occur in Erewhon and are expressed in dollars. In an attempt...

Q:

Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company...

Q:

One ball will be drawn at random from a box containing: 3 cyan balls, 5 magenta balls, and 7 yellow balls. What is the probability that the ball will be cyan?