Lon Run Average cost curve

Related BrainMass Solutions

• Long-Run Average-Cost Curve

  The shape of the long run average cost curve remains the same. The curve will be a U-shaped curve in both cases. This is because the long run average cost curve is a lower envelope of all the short run average cost curves.

• Marginal & Average Cost Curve

  B) Why are short-run marginal cost curves expected to slope upward? C) If you know that average costs are increasing, is the marginal cost curve above or below the average cost curve?

• short run Average Cost curve

  The long run average cost curve shown in the first diagram shows increasing returns to scale. The second long run average cost curve shows constant returns to scale and the third long run average cost curve shows decreasing returns to scale.

• Average total cost is

  of scale the a. long run average cost curve rises b. marginal cost curve declines c. average total cost curve declines d. average variable cost curve declines I think it is B Average total cost is b. total cost divided by output (correct).

• Short-Run Average and Total Cost

  (3) in the long run, choosing a higher level of fixed cost shifts the long-run average total cost curve upward. -F A higher level of fixed cost will shift the long-run average total cost curve to the right.

• The marginal cost curve

  Therefore, marginal cost is never greater than average cost." i) Suppose a firm's short-run average cost curve is U shaped: what does this imply about the marginal return to the variable input?

• Cost Curves

  B)Why are short-run marginal cost curves expected to slope upward? C)If you know that average costs are increasing, is the marginal cost curve above or below the average cost curve?

• short-run marginal-cost curve

  The short-run marginal cost curve must intersect the short-run average total cost curve at the minimum point.

• Short-run marginal cost curves

  2. a) Why are short-run marginal cost curves expected to slope upward? b) If you know that average costs are increasing, is the marginal cost curve above or below the average cost curve?