As a kid, you recorded the costs of your Kool-Aid stand and drew your long-run average-cost curve. Now you work in a video chip factory. Would you expect any similarities IN SHAPE between the kool-aid cost curve and the long-run average cost curve for the chip factory? Would you expect any differences? Question requires specifics.
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 ...
The solution explains the changes in LRAC.