The picture below shows 4 short-run average total cost curves (SRATC), one for each level of capital, K=1, 2, 3, 4. The scalloped curve in bold enveloping the short-run average total cost curves show the long-run cost curve. If the firm produces 900 units of output, how many units of capital will the firm use in the long-run? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. b C K=1 d K=2 K-3 K4 Cost SKATE, SKATE, Kü 200 SATE SPATE,

The picture below shows 4 short-run average total cost curves (SRATC), one for each level of capital, K=1, 2, 3, 4. The scalloped curve in bold enveloping the short-run average total cost curves show the long-run cost curve. If the firm produces 900 units of output, how many units of capital will the firm use in the long-run? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. b C K=1 d K=2 K-3 K4 Cost SKATE, SKATE, Kü 200 SATE SPATE,

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 21P

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Similar questions

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Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are four domestic auto manufacturers, but the demand for domestic autos is no more than 2.5 times the quantity produced at the bottom of the long-run average cost curve. What do you expect will happen to the domestic auto industry in the long run?
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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?