7. Draw a long-run average total cost curve. (LO12-2) a. Why does it slope downward initially? b....

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7. Draw a long-run average total cost curve. (LO12-2)

a. Why does it slope downward initially?

b. Why does it eventually slope upward?

c. How would your answers to a and b differ if you had drawn a short-run cost curve?

d. How large is the fixed-cost component of the long-run cost curve?

e. If there were constant returns to scale everywhere, what would the long-run cost curve look like?

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Microeconomics

ISBN: 9780077501808

9th Edition

Authors: David Colander

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Question Posted: Oct 15, 2024 01:01 AM

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7. Draw a long-run average total cost curve. (LO12-2) a. Why does it slope downward initially? b....

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Microeconomics

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