B. Refer to the figure below. LRAC a. In the short run, capital is a fixed cost. Draw for a few different values of K, what the short run average cost, SRAC, looks like a relation to the long-run average cost. b. Sometimes, one talks of (dis)economies of scale. What and where in the graph indicates whether we have economies or diseconomies of scale?
B. Refer to the figure below. LRAC a. In the short run, capital is a fixed cost. Draw for a few different values of K, what the short run average cost, SRAC, looks like a relation to the long-run average cost. b. Sometimes, one talks of (dis)economies of scale. What and where in the graph indicates whether we have economies or diseconomies of scale?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section12.4: Costs In The Short Run And In The Long Run
Problem 4QQ
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