Say that neither labor nor machines are fixed but there is a 50 percent quick-order premium paid for both workers and machines for their delivery in the short run. Once you buy them, they cannot be returned, however. What do your short-run marginal cost and short-run average total cost curves look like?
Say that neither labor nor machines are fixed but there is a 50 percent quick-order premium paid for both workers and machines for their delivery in the short run. Once you buy them, they cannot be returned, however. What do your short-run marginal cost and short-run average total cost curves look like?
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis
Section: Chapter Questions
Problem 1DQ
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Discussion Question: Say that neither labor nor machines are fixed but there is a 50 percent quick-order premium paid for both workers and machines for their delivery in the short run. Once you buy them, they cannot be returned, however. What do your short-run marginal cost and short-run average total cost curves look like?
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