Draw a neatly labelled LRAC curve with at least 3 SRAC curves contained within it and...

Draw a neatly labelled LRAC curve with at least 3 SRAC curves contained within it and explain how LRAC is used as an output planning mechanism for how much a firm should produce.

Solutions

Expert Solution

If Xx output to be produced then SRAC3 curve will be used and if Xz is to be produced then SRAC6 curve will be used.

Long run average cost is minimum at output level Xm.

Rahul Sunny answered 5 months ago

Next > < Previous

Related Solutions

Q2. Draw a neatly labelled diagram indicating the price effect – the direction of substitution effect...

Q2. Draw a neatly labelled diagram indicating the price effect – the direction of substitution effect and the direction of income effect separately, for a normal good when price of Good-X (on X-axis) increases. Q3. Given a supply curve equation Qs=500(P-2) and demand curve equation Qd=11000-1000P. Find the equilibrium price and quantity. Draw a neat diagram of the equilibrium situation with everything labelled properly. Calculate consumer surplus, producer surplus and deadweight loss (if any) at equilibrium. Suppose the government mandates...

1.) Neatly draw out the ASAD model including the names of each of the curves and...

1.) Neatly draw out the ASAD model including the names of each of the curves and the labels for each axis. 2.) the graph should demonstrate a recessionary gap. 3.)Model the classical response to the gap, including a label for each new line drawn. 4.)What are the outcomes of this process?

a. Draw the graph for the market demand curve for the 3 following demand curves: Individual...

a. Draw the graph for the market demand curve for the 3 following demand curves: Individual 1: q1=20−P/2 Individual 2: q2=5−P/2 Individual 3: q3=5−P b. Obtain the consumer surplus for individuals 1, 2, and 3 separately using their individual demand curves for P=$4 c. Add the three consumer surpluses. Then confirm that you get the same answer for CS using the market demand curve you have drawn in part a. d. Repeat the exercise but now for a price of...

What information is contained in an indifference curve? Why are such curves (a) downward sloping and...

What information is contained in an indifference curve? Why are such curves (a) downward sloping and (b) convex from the origin? Why does total utility increase as the consumer moves to indifference curves farther from the origin?

a) Using the supply schedule given below, draw an accurately labelled supply curve. Also, comment on...

a) Using the supply schedule given below, draw an accurately labelled supply curve. Also, comment on the shape of the supply curve. Why does the supply curve slope like this? Explain clearly. Price 10 8 6 4 2 Supply 500 400 300 200 100 [Answer in 180 – 240 words] [Draw in paper; take photo and paste/Use MS Word/add screenshot] b) Do you think the level of technology available have an impact on the supply of a product? Using examples,...

Question No 5: Using the supply schedule given below, draw an accurately labelled supply curve. Also,...

Question No 5: Using the supply schedule given below, draw an accurately labelled supply curve. Also, comment on the shape of the supply curve. Why does the supply curve slope like this? Explain clearly. Price 10 8 6 4 2 Supply 500 400 300 200 100 [Answer in 180 – 240 words] [Draw in paper; take photo and paste/Use MS Word/add screenshot] Do you think the level of technology available have an impact on the supply of a product? Using...

What is the best trick to be able to draw all polar curves within 5 minutes?...

What is the best trick to be able to draw all polar curves within 5 minutes? Please provide detailed clarification and some examples.

a. Draw a supply and demand curve. Label all axes and curves appropriately. Label the equilibrium...

a. Draw a supply and demand curve. Label all axes and curves appropriately. Label the equilibrium point, the equilibrium quantity, and the equilibrium price. b. Explain what equilibrium in the market is and why there is a tendency toward it. (In other words, if the price of something is higher or lower than the equilibrium price, what forces (i.e., human behavior) push the price and quantity to equilibrium.) c. Illustrate and explain how equilibrium price and quantity change when either...

Draw a supply and demand diagram for each problem. Also, write WHY the curve (or curves)...

Draw a supply and demand diagram for each problem. Also, write WHY the curve (or curves) is (are) shifting based on the shift factors for demand and supply. What is happening to the equilibrium price and quantity in each problem? Treat each problem separately and always remember the concept of ceteris paribus. 2. Assume that soup is an inferior good. Several people have lost their job in the wake of the coming recession, leading to a loss in consumer incomes....

3-2 Please provide details and examples How can the long-run average cost (LRAC) curve be derived...

3-2 Please provide details and examples How can the long-run average cost (LRAC) curve be derived from the short-run average total cost (SRATC) curve? Describe economies of scale and diseconomies of scale. What are the determinants of economies of scale and diseconomies of scale, respectively? Using a real-world company (other than Sysco), explain the causes of economies of scale for your company. How would economies of scale help your company compete in its industry?

Subjects