The long-run ATC curve of a competitive firm derives its shape from: * decreasing, then increasing, short-run returns. increasing, then decreasing, short-run returns. economies, then diseconomies, of scale. diseconomies, then economies, of scale.

The long-run ATC curve of a competitive firm derives its shape from: * decreasing, then increasing, short-run returns. increasing, then decreasing, short-run returns. economies, then diseconomies, of scale. diseconomies, then economies, of scale.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Perfect Competition

Section: Chapter Questions

Problem 1QP

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

The long-run ATC curve of a competitive firm derives its shape from: *

decreasing, then increasing, short-run returns.

increasing, then decreasing, short-run returns.

economies, then diseconomies, of scale.

diseconomies, then economies, of scale.

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