Explore BrainMass

Explore BrainMass

    Lon Run Average cost curve

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    I. What assumption gives rise to a U-shaped long run average cost curve for the firm? (Describe shortly)

    II.What ways firms in on oligopoly try to elminate or control the consequences of this charcteristic?

    © BrainMass Inc. brainmass.com November 24, 2022, 11:49 am ad1c9bdddf

    Solution Preview

    The average variable cost curve is U-shaped because of the following reasons: Average variable cost is relatively high at small quantities of output, then as production ...