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.

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Rahul Sunny answered 2 years ago

1 The short-run average total cost curve and the long-run average total cost curve are similarly...

1 The short-run average total cost curve and the long-run average total cost curve are similarly shaped. What are the causes for the short run and long-run average total cost curve to slope down and up? 2 Mr. Salim has been working at a car manufacturing plant forthe last 4 years. He recently lost his job due to the downsizing of the company he works for due topoor car sales and poor economic performance. What type of unemployment is Salim...

Long Run Cost Derive a firm's total cost curve by using a firms isoquants and isocost...

Long Run Cost Derive a firm's total cost curve by using a firms isoquants and isocost lines(note:be sure to show what is on the axis,and the values for all points and curves-the correct labeling and spacing of the things is very mportant)for the case where the firm has a)constant return to scale b)decreasing return to scale c)increasing returns to scale d)For decreasing return to scale ,from the total cost curve,derive the correct long run marginal cost curve and long run...

In a price-taker market, each firm's short run supply curve is its marginal cost curve, above its minimum average total cost.

7) T/F In a price-taker market, each firm's short run supply curve is its marginal cost curve, above its minimum average total cost.8) T/F The limited liability of stockholders in the corporate business structure makes it harder to raise equity capital.9) T/F In the year 2008, nearly three out of four business firms in the United States were organized as proprietorships.10) T/F When demand is relatively price inelastic, price and total revenue will change in the same direction.11) T/F As...

Suppose a perfectly competitive firm's short-run total cost (TC) is given by TC = 200...

Suppose a perfectly competitive firm's short-run total cost (TC) is given by TC = 200 + 4Q + 2Q2 where Q = output and 200 = fixed cost. As a result, MC = 4 + 4Q. Suppose the price of the firm's price is $24. a. How much should the firm produce in the short run to maximize its profits? b. How large will the firm's short-run profits be? Remember Profit = TR – TC. c. Should the...

Graph and explain in detail the short-run and long-run equilibria under a monopolistic competition situation.

How can the long-run average cost (LRAC) curve be derived from the short-run average total cost...

How can the long-run average cost (LRAC) curve be derived from the short-run average total cost (SRATC) curve?

How can the long-run average cost (LRAC) curve be derived from the short-run average total cost...

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?

Consider a perfectly competitive market in which each firm's short-run total cost function is C =...

Consider a perfectly competitive market in which each firm's short-run total cost function is C = 64 + 6q + q2, where q is the number of units of output produced. The associated marginal cost curve is MC = 6+ 2q. In the short run each firm is willing to supply a positive amount of output at any price above ___. If the market price is $30 each firm will produce ____ units in the short-run. Each firm earns a...

Let a perfectly competitive firm's short-run total cost function be; C(p) = 100q - 4q2 +...

Let a perfectly competitive firm's short-run total cost function be; C(p) = 100q - 4q2 + 0.2q3 + 450 a) Find the Marginal Cost (MC), Variable Cost (VC) and Average Variable Cost (AVC)? b) Suppose the Market Price is P = $100, what would be the profit-maximizing quantity? c) Now suppose Average Total Cost (ATC) = $116 at the profit-maximizing quantity. Is this firm making a loss, profit or breakeven? d) Should the firm shut down or continue to produce?...

Why is the short run supply curve relatively more inelastic than the long run supply curve?

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

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1 The short-run average total cost curve and the long-run average total cost curve are similarly...

Long Run Cost Derive a firm's total cost curve by using a firms isoquants and isocost...

In a price-taker market, each firm's short run supply curve is its marginal cost curve, above its minimum average total cost.

Suppose a perfectly competitive firm's short-run total cost (TC) is given by TC = 200...

Graph and explain in detail the short-run and long-run equilibria under a monopolistic competition situation.

How can the long-run average cost (LRAC) curve be derived from the short-run average total cost...

How can the long-run average cost (LRAC) curve be derived from the short-run average total cost...

Consider a perfectly competitive market in which each firm's short-run total cost function is C =...

Let a perfectly competitive firm's short-run total cost function be; C(p) = 100q - 4q2 +...

Why is the short run supply curve relatively more inelastic than the long run supply curve?