In the long run, the long-run average cost curve whereas in the very long run, the long-run average cost curve a. None of the above. b. Shifts up; does not shift. C. Shifts down; does not shift. d. Does not shift; shifts up. e. Does not shift; shifts down.

In the long run, the long-run average cost curve whereas in the very long run, the long-run average cost curve a. None of the above. b. Shifts up; does not shift. C. Shifts down; does not shift. d. Does not shift; shifts up. e. Does not shift; shifts down.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 28RQ: What shape of a long-run average cost curve illustrates economies of scale, constant returns to...

See similar textbooks

Related questions

Q: .If MR > MC, the monopolist should: MR Marginal Revenue = MC Marginal Cost =

A: Monopolist refers to the market where only single firm exists in the market. Single firm is price…

Q: 4. Graphitia Design Company considers purchasing a computer system. The initial capital cost of the…

A: Net present value = Present value of benefits - Present value of costs

Q: Determine the amount needed now to purchase a machine for P200,000, provide an annualfund of P15,000…

A: Given that, The initial Cost of the Machine = P200,000 Annual Cost of the Machine = P 15,000…

Q: 11- Which of the following would cause the short-run market supply curve to shift inward? Select…

A: The diminutive run individual supply bend is the person's peripheral expense at all focuses more…

Q: Imagine Sri Lanka is trying to reduce inflation using a contractionary fiscal policy. Discuss the…

A: The government uses fiscal policy to stabilize the economy when it is overheated or output growth is…

Q: where

A: Resource implies to all the materials accessible in our environment which are technologically…

Q: 2. Match the descriptions below to the appropriate concept: A. Economies of Scale B. Efficient Scale…

Q: Table 15-1 Quantity Price $35 Q = 4 Q = 5 Q=6 Q=7 11 2 17 8 9 $29 $23 $17 Total Revenue Average…

A: In a monopoly, there is a single firm producing unique product. There is no free entry or exit of…

Q: A4) Consider the international parities and provide a forecast for the pair of GBP/EUR in coming 3…

Q: Individuals A, QA=7-.5P Q-10-P Qc=18-3P Make a price quantity chart for each consumer. Then add a…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: P4 3. Using the AA-DD model, explain: (a) why a temporary increase in the money supply raises output…

A: The AA-DD model is a concept in economics where the AA curve shows the asset market while the DD…

Q: 2. The inflation rate of Alternatown is currently 3.75%, and the real interest rate is currently…

A: Here, some information about inflation rate, real interest rate and nominal interest rate is given…

Q: Siemens AG invests €80,000,000 to build a manufacturing plant to build wind turbines. The company…

A: The time it will take for a business to recover an investment is known as the payback period. The…

Q: Suppose we are analyzing the market for hot chocolate. Graphically illustrate the impact each of…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Refer to the information provided in Table Table Federal purchases of goods Services Imports Change…

A: Gross Domestic Product is defined as the monetary value of all final goods and services produced…

Q: Refer to the tables in Questions 2 and 3 to identify which of the below is correct. Select all…

A: Introduction Break even point is where total revenue will be equal to total expenses. Here total…

Q: Discuss the relationship that exists amongst the three short-run total cost curves. Motivate your…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: 12.5% and each month you make only the minimum payment of 5% of your balance, what your balance…

A: Given, P = $7500 Interest rate = 12.5% Minimun Payment Interest = 5% = 0.05 Time = 24 months

Q: The firm Multimax, Inc. operates in a competitive market because OMultimax, Inc. is one of a few…

A: There are a large number of firms operating in the competitive market. All firms produce homogenous…

Q: Cartels usually breakdown because of what? Cartels can only be effectively run if they use Game…

A: A cartel is a gathering of free market members who connive with one another to work on their…

Q: (a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to…

A: Formula for Interest: Interest = Principal × Rate × Time That would be the formula we would…

Q: Government statisticians have estimated that . frictional unemployment is 3.5%; and structural…

A: Natural Rate of Unemployment = Frictional Unemployment + Structural Unemployment It is defined as…

Q: Please judge whether the following function has the characteristics of CRS, IRS or DRS. Y = [2K+ 31³…

A: To solve these kind of questions multiply both labor and capital by any constant say A >1 Then…

Q: Quantity of cars Oa Ob Oc Od 1-8 6-8 1 2 46 3 4 5 6 7 8 LRATC of car $30,000 20,000 The wagon is a…

A: A firm which is long-run average total cost (LRATC) shows the average cost per unit of output over a…

Q: Suppose that on January 1, 2022, the price of a one-year Treasury bill with a face value of…

A: Given: The face value is = $1,000 The price value is = $926.78 The real interest rate turns out to…

Q: A firm has found from past experience that its profit in terms of number of units x produced, is…

A: Profit maximization is a cycle business firms go through to guarantee the best output and price…

Q: Several factors may be influential on the behaviour of buyers and there also exists different types…

A: Shoppers and organizations purchasers vary enormously as the fundamental reason for these two sorts…

Q: CENGAGE MINDTAP omework(Ch 13) 1. Definition of economic costs Sean lives in Detroit and runs a…

A: Explicit cost refers to the cost which is incurred for running a business. It includes the payments…

Q: As the Federal Reserve sharply raises rates in the face if substantial inflationary pressures,…

A: Inflationary pressure is the continuous increase in the general price level in an economy. During…

Q: Demand equation of private limited tiles estimated as P = 8000 - 24Q. find the marginal revenue when…

A: Given the information: Demand equation, P = 8000 - 24Q Q = 1000

Q: Table) Based on the table, what is the average total product when John's Salsa Company hires three…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How much money would you need to deposit today at 8% annual interest compounded monthly to have…

A: Given Rate of interest = 8% per year compounded monthly. Future value of money =$20000 Time = 5…

Q: A small monopoly manufacturer of widgets has a constant marginal cost of $15. The demand for this…

A: In economics, the marginal cost of production is the change in total production cost that comes from…

Q: for sale in Asilomar and six people who would each like to purch me that the parcels are essentially…

A: Suppose that there ----------------‐------ price of each is $570,000. Willingness to buy must be…

Q: Qu. Suppose Telstra wins a government contract that would pay it the following amounts: $3 million…

A: Present worth is the amount of cash that should be put resources into request to accomplish a…

Q: Predict the demand for December using 4-period moving average.

A: To compute 4 month average for December Use the four months before it. Average Aug, Sep, Oct and Nov…

Q: QUESTION ONE The demand function for a product is quadratic in nature. Three points, which lie on…

Q: What rate of return would she have earned during the year (between July 2021 and July 2022)? Show…

A: Follow the following steps Covert USD to Turkish Lira Apply Interest rate and add it to the amount…

Q: Price $2.50 2.00 1.50 1.00 0.50 H Sd Do 0 100 200 300 400 500 600 Quantity Refer to the graph, which…

A: Given information: We have given the domestic demand and domestic supply curve for a product. There…

Q: Which of the following statements is correct?

A: c) A company must use LIFO for financial reporting if it uses it for tax purposes.

Q: The fact that the firms in an oligopoly are mutually interdependent means that each firm: must…

A: An oligopoly is a market structure in which a market or industry is overwhelmed by few huge dealers…

Q: There are 11 identical internet service providers (ISPs) in a city serving a market demand with an…

A: Elasticity of demand measures the the responsiveness of percentage change in quantity demanded due…

Q: he end of the year: you sell trees Lei cut down for $27,000; you pay Lei $15,000; and your saw is…

A: GDP is the aggregate value of goods and services produced within the domestic territory of a nation…

Q: if Age dependency ratio (% of working-age population) increas what will happen to fixed capital…

A: In basic or simple terms we can say that the Fixed capital consumption is known to be as the…

Q: following: p=180-0.25*Q. The private marginal cost of coal lumps is given by the following:…

A: In economics, deadweight loss refers to the loss in economic rents (or total surplus) that not…

Q: What is wrong with this answer?

A: The correct answer is No one would have an incentive to work once they had earned $200,000, so…

Q: Which of the following definitions is correct? Economic profit accounting profit - implicit costs…

A: An economic profit or loss is the difference between the revenue received from the sale of an output…

Q: A small monopoly manufacturer of widgets has a constant marginal cost of $15. The demand for this…

A: Given information: A monopoly firm produces widgets. The demand for the firm's widgets is Q = 105-2P…

Q: Which would decrease the demand for a particular type of labor? An increase in the prices of the…

A: Labor is defined as the amount of physical, mental, and social effort put by a worker in production…

Q: Refer to the graph below. What is the impact of higher population and income growth on equilibrium…

A: Demand for the good is the quantity of the goods demanded by various consumers at different prices…

Question

In the long run, the long-run average cost curve
whereas in the
very long run, the long-run average cost curve
a. None of the above.
b. Shifts up; does not shift.
C. Shifts down; does not shift.
d. Does not shift; shifts up.
e. Does not shift; shifts down.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What shape of a long-run average cost curve illustrates economies of scale, constant returns to scale, and diseconomies of scale?
What is the difference between economies of scale, constant returns to scale, and diseconomies of scale?
Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
A small company that shovels sidewalks and driveways has 100 homes signed up for its services this winter. It can use various combinations of capital and labor: intensive labor with hand shovels, less labor with snow blowers, and still less labor with a pickup truck that has a snowplow on front. To summarize, the method Choices are: Method 1: 50 units of labor, 10 units of capital Method 2: 20 units of labor, 40 units of capital Method 3: 10 units of labor, 70 units of capital If hiring labor for the winter costs $100/unit and a unit of capital costs 400, what is the best production method? What method should the company use if the cost of labor rises to $20/unit?
A firm had sales revenue of 1 million last year. It spent 600,000 on labor, 150,000 on capital and 200,000 on materials. What was the firms accounting profit?
Are fixed costs also sunk costs? Explain.