Question
31. A common name for fixed cost is overhead. If you divide fixed cost by the quantity of output produced, you get average fixed cost.
31. A common name for fixed cost is "overhead." If you divide fixed cost by the quantity of output produced, you get average fixed cost. Supposed fixed cost is $1,000. What does the average fixed cost curve look like? Use your response to explain what "spreading the overhead" means.
37. How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect the long-run average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?
[NOTE]I'd like you to send typing version of these answers not hand-writing.
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