Explain why the long run average total cost curve initially slops downward.

Question

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Answer 1

Question

Chapter 12, Problem 7QE

(a)

To determine

Explain why the long run average total cost curve initially slops downward.

(b)

To determine

Explain why the long run average total cost curve slopes eventually upward.

(c)

To determine

Explain the shape of short run cost curve.

(d)

To determine

Explain the fixed cost component in long run cost curve.

(e)

To determine

Explain the long run cost curve.

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Answer 2

Question

Chapter 12, Problem 7QE

(a)

To determine

Explain why the long run average total cost curve initially slops downward.

(b)

To determine

Explain why the long run average total cost curve slopes eventually upward.

(c)

To determine

Explain the shape of short run cost curve.

(d)

To determine

Explain the fixed cost component in long run cost curve.

(e)

To determine

Explain the long run cost curve.

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Answer 3

Question

Chapter 12, Problem 7QE

(a)

To determine

Explain why the long run average total cost curve initially slops downward.

(b)

To determine

Explain why the long run average total cost curve slopes eventually upward.

(c)

To determine

Explain the shape of short run cost curve.

(d)

To determine

Explain the fixed cost component in long run cost curve.

(e)

To determine

Explain the long run cost curve.

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Answer 4

Question

Chapter 12, Problem 7QE

(a)

To determine

Explain why the long run average total cost curve initially slops downward.

(b)

To determine

Explain why the long run average total cost curve slopes eventually upward.

(c)

To determine

Explain the shape of short run cost curve.

(d)

To determine

Explain the fixed cost component in long run cost curve.

(e)

To determine

Explain the long run cost curve.

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Answer 5

Chapter 12, Problem 7QE

(a)

To determine

Explain why the long run average total cost curve initially slops downward.

(b)

To determine

Explain why the long run average total cost curve slopes eventually upward.

(c)

To determine

Explain the shape of short run cost curve.

(d)

To determine

Explain the fixed cost component in long run cost curve.

(e)

To determine

Explain the long run cost curve.

Answer 6

Chapter 12, Problem 7QE

(a)

To determine

Explain why the long run average total cost curve initially slops downward.

Answer 7

Chapter 12, Problem 7QE

(a)

To determine

Explain why the long run average total cost curve initially slops downward.

Answer 8

(b)

To determine

Explain why the long run average total cost curve slopes eventually upward.

Answer 9

(b)

To determine

Explain why the long run average total cost curve slopes eventually upward.

Answer 10

(c)

To determine

Explain the shape of short run cost curve.

Answer 11

(c)

To determine

Explain the shape of short run cost curve.

Answer 12

(d)

To determine

Explain the fixed cost component in long run cost curve.

Answer 13

(d)

To determine

Explain the fixed cost component in long run cost curve.

Answer 14

(e)

To determine

Explain the long run cost curve.

Answer 15

(e)

To determine

Explain the long run cost curve.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 12.1 - Prob. 1Q Ch. 12.1 - Prob. 2Q Ch. 12.1 - Prob. 3Q Ch. 12.1 - Prob. 4Q Ch. 12.1 - Prob. 5Q Ch. 12.1 - Prob. 6Q Ch. 12.1 - Prob. 7Q Ch. 12.1 - Prob. 8Q Ch. 12.1 - Prob. 9Q Ch. 12.1 - Prob. 10Q

Explain why the long run average total cost curve initially slops downward.

Solution Summary: The author explains how the long run average total cost curve initially slopes downward due to economies of scale.

Concept explainers

Explain why the long run average total cost curve initially slops downward.

Explain why the long run average total cost curve slopes eventually upward.

Explain the shape of short run cost curve.

Explain the fixed cost component in long run cost curve.

Explain the long run cost curve.

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Chapter 12 Solutions