explain why the long-run averrage cost is typically U-shaped?

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Rahul Sunny answered 2 years ago

Explain why the long-run average cost is typically U-shaped. Explain the connection between the shape of...

Explain why the long-run average cost is typically U-shaped. Explain the connection between the shape of the long-run average cost curve and returns to scale.

why average cost is u-shaped curve?

A U-shaped long-run average total cost curve can be explained by firms increasing their factory size...

A U-shaped long-run average total cost curve can be explained by firms increasing their factory size to (x) avoid coordination problems that occur when the factory is large. (y) take advantage of greater specialization. (z) avoid fixed costs. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. (y) only A business firm produces and sells specialty cakes. Last year, the firm produced 12,000 cakes and sold each cake...

Why are the marginal and average cost curves U shaped? Explain what is the relationship between...

Why are the marginal and average cost curves U shaped? Explain what is the relationship between the marginal cost of production and marginal product of labour in the short term.

a)Why is the ATC U-Shaped? b)Why is marginal curve upward sloping in the short run ?...

a)Why is the ATC U-Shaped? b)Why is marginal curve upward sloping in the short run ? c)Where and why does the MC curve cross the ATC curve? d)Given values for ATC and AVC,how would you determine Fixed cost (what are the steps necessary to get from the first twoto the last one )? e)Given ATC,how would you determine total cost? f)Graphically show and verbaly explain what the general pattern of and relationship between fixed cost,variable cost and total cost as...

30. a) Short-run and long-run average cost curves are both U-shaped because the firm must eventually encounter diminishing marginal returns to labor.

T or F?30. a) Short-run and long-run average cost curves are both U-shaped because the firm must eventually encounter diminishing marginal returns to labor.b) The production function describes how much output a firm can generate for various cost levels.c) The marginal cost curve crosses both the average cost and variable cost curves at the minima.d) If the wage and rental rates are $10 and $50 per hour respectively and an additional worker could produce 100 units of output in an...

Explain why a firm's long-run total cost is no greater than its short-run total cost. Under...

Explain why a firm's long-run total cost is no greater than its short-run total cost. Under what circumstances will the two be equal? Illustrate both types of total cost in a diagram.

Explain why in the long run marginal cost = w/MPL = r/MPK

Draw a long-run average cost curve, carefully explain how it is derived, and explain why it...

Draw a long-run average cost curve, carefully explain how it is derived, and explain why it has the shape that it has. Please show me your thought process. Please explain it as if you are telling it to someone who has no clue about economics.

a. Production & Cost Relationship in the Long-Run Explain the long-run production concept of diminishing returns...

a. Production & Cost Relationship in the Long-Run Explain the long-run production concept of diminishing returns to scale, and what it implies about the long-run average costs of production. b. Quantity of Umbrellas Total Cost MC 0 8 na 1 10 2 2 13 3 3 17 4 4 22 5 5 28 6 6 35 7 (4 pts) Comment on the shape of the short-run total production curve that gives the input and output relationship in the short-run. Sketch...

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