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

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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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
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
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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