Assume a standard marginal cost curve and average cost curve for firms producing cellular phones. Consider where the average and marginal cost curves will be when technological advances and economies of scale reduce the cost of producing cellular phones. This causes the average cost curve to shift down and the marginal cost curve to shift to the right. The new marginal cost curve will not intersect the new average cost curve
Assume a standard marginal cost curve and average cost curve for firms producing cellular phones. Consider where the average and marginal cost curves will be when technological advances and economies of scale reduce the cost of producing cellular phones. This causes the average cost curve to shift down and the marginal cost curve to shift to the right. The new marginal cost curve will not intersect the new average cost curve
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![not intersect the new average cost curve
intersect the new average cost curve but not at its minimum
intersect the new average cost curve at its minimum](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa9efe910-fb5f-41b2-a82d-eda9e45aba44%2F3c69ce42-e37e-4928-b081-823434e46899%2Fhgi9qp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:not intersect the new average cost curve
intersect the new average cost curve but not at its minimum
intersect the new average cost curve at its minimum
![Assume a standard marginal cost curve and average cost curve for firms producing cellular phones.
Consider where the average and marginal cost curves will be when technological advances and economies of scale reduce the cost of producing cellular phones.
This causes the average cost curve to shift down and the marginal cost curve to shift to the right . The new marginal cost curve will
not intersect the new average cost curve](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa9efe910-fb5f-41b2-a82d-eda9e45aba44%2F3c69ce42-e37e-4928-b081-823434e46899%2Fr5c2lx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume a standard marginal cost curve and average cost curve for firms producing cellular phones.
Consider where the average and marginal cost curves will be when technological advances and economies of scale reduce the cost of producing cellular phones.
This causes the average cost curve to shift down and the marginal cost curve to shift to the right . The new marginal cost curve will
not intersect the new average cost curve
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