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Tong ruh, keep outpu Iikely do Shift to operate on ATC2 Shift to operate on ATC3 Shut down Stay on ATC, but decrease to the point touching LRATC True or False: The minimum efficient scale is achieved at the minimum point on each average total cost curve. False True

Tong ruh, keep outpu Iikely do Shift to operate on ATC2 Shift to operate on ATC3 Shut down Stay on ATC, but decrease to the point touching LRATC True or False: The minimum efficient scale is achieved at the minimum point on each average total cost curve. False True

Survey Of Economics
Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 6SQP
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long-run cost relationships

In the long run, if the firm decides to keep output at its initial level, what will it likely do? Shift to operate on ATC2 O sift to operate on ATC3 Shut down O stay on ATC1 but decrease to the point touching LRATC True or False: The minimum efficient scale is achieved at the minimum point on each average total cost curve. False True
Transcribed Image Text:In the long run, if the firm decides to keep output at its initial level, what will it likely do? Shift to operate on ATC2 O sift to operate on ATC3 Shut down O stay on ATC1 but decrease to the point touching LRATC True or False: The minimum efficient scale is achieved at the minimum point on each average total cost curve. False True
The following graph shows the short-run average total cost curves and the long-run average total cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average total cost curve (LRATC); for example, Q1 marks the point of tangency between ATC1 and LRATC. The orange point on ATC, indicates the firm's current output level in the short run (Q2). ATC, ATC LRATO ATC, ATC, ATC. OUTPUT COST PER UNIT
Transcribed Image Text:The following graph shows the short-run average total cost curves and the long-run average total cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average total cost curve (LRATC); for example, Q1 marks the point of tangency between ATC1 and LRATC. The orange point on ATC, indicates the firm's current output level in the short run (Q2). ATC, ATC LRATO ATC, ATC, ATC. OUTPUT COST PER UNIT
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