Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The LRATC curve for the company is higher than the LRATC curve for a more competitive industry with smaller firms. This indicates that the company
The LRATC curve for the company is higher than the LRATC curve for a more competitive industry with smaller firms. This indicates that the company is more efficient than its competitors, which could be due to its larger size and increased capital. This suggests that the company's size is justified, as it is able to produce more efficiently than its competitors. Furthermore, the company's increased capital could be used to invest in research and development, which could lead to further improvements in efficiency and productivity
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started