Long-Run Average-Cost Curve

Related BrainMass Solutions

• Short-Run Average and Total Cost

  (3) in the long run, choosing a higher level of fixed cost shifts the long-run average total cost curve upward. -F A higher level of fixed cost will shift the long-run average total cost curve to the right.

• Long run market supply curve

  What is the long-run market supply curve? The firm's long run supply curve is the portion of the marginal cost curve that is above the minimum value of the average cost curve.

• Average total cost is

  of scale the a. long run average cost curve rises b. marginal cost curve declines c. average total cost curve declines d. average variable cost curve declines I think it is B Average total cost is b. total cost divided by output (correct).

• short run Average Cost curve

  The long run average cost curve shown in the first diagram shows increasing returns to scale. The second long run average cost curve shows constant returns to scale and the third long run average cost curve shows decreasing returns to scale.

• Determining short and long run equilibrium price/quantity

  In long rum cost structure for firms is given as same, So, long run equilibrium price will remain same as calculated in part (d) i.e. p=10 Demand = 650-25*10=400 Solution describes the steps to determine market supply curve, short and long run

• Economics Concepts - Production and Cost

  The long run marginal cost curve cuts the long run average cost curve at the minimum point of long run average cost curve.

• Characteristic of Both Monopolistic Competition and Perfect Competition

  In the long run, a firm will produce a level of output that corresponds to the minimum point of their average total cost curve. Answer 3: In the long run, a firm will earn zero economic profit.

• Calculating profit maximizing supply level from a retailer

  Using the firm's marginal cost curve, calculate the profit-maximizing long-run supply from a typical retailer B. Calculate the average total cost curve for a typical gasoline retailer. A.

• Monopolist point of view and a Pure Competition point of view

  The optimal plant is the one whose short run average total cost curve is tangent to the long run average cost curve at the point corresponding to long run equilibrium output.