7. For the following industries, state whether the long-run average cost curve has an extended range with a negative slope, a positive slope, or a zero slope. In each case, explain how your answer relates to returns to scale. a. handcrafted pottery b. manufacturing of smart phones c. a particular high-quality variety of coffee d. e-book publishing
7. For the following industries, state whether the long-run average cost curve has an extended range with a negative slope, a positive slope, or a zero slope. In each case, explain how your answer relates to returns to scale. a. handcrafted pottery b. manufacturing of smart phones c. a particular high-quality variety of coffee d. e-book publishing
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![7. For the following industries, state whether the long-run average cost curve has
an extended range with a negative slope, a positive slope, or a zero slope. In each
case, explain how your answer relates to returns to scale.
a. handcrafted pottery
b. manufacturing of smart phones
c. a particular high-quality variety of coffee
d. e-book publishing](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F43e06bb1-5854-4fff-96de-8bdd7de1c7f3%2F5fa2df0a-98e2-4ef3-81fe-2cf5715a13f6%2Fdwtb5jn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7. For the following industries, state whether the long-run average cost curve has
an extended range with a negative slope, a positive slope, or a zero slope. In each
case, explain how your answer relates to returns to scale.
a. handcrafted pottery
b. manufacturing of smart phones
c. a particular high-quality variety of coffee
d. e-book publishing
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