Why does the long run average cost curve decrease and then increase? Give some reasons that the real-world experenciences this. Question 31Written question for Micro economics:Assume the following situationSuppose the following is the short run and long run cost curve for a firm in an industry. The firm currently has a market price of 10 dollars and is producing 1500 units. The firm is currently on the Average Total Cost 1 on the long run ATC curve.AC SHort run Average ACcost corve1081000MC1500ATCAVC 86Long run Averagecost curve, ATC,, атса,2000ATC3Kenia

In the long run, all the factors of production and costs are variable and the firm is able to adjust…

Answered: Why does the long run average cost…

Why does the long run average cost curve decrease and then increase? Give some reasons that the real-world experenciences this.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 4.10P

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