Both short-run and long-run average cost curves are likely to have a negative slope up to a given level of output/scale. What are the reasons behind such negative relationship between average costs and output in the short and the long-run?
Both short-run and long-run average cost curves are likely to have a negative slope up to a given level of output/scale. What are the reasons behind such negative relationship between average costs and output in the short and the long-run?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 28RQ: What shape of a long-run average cost curve illustrates economies of scale, constant returns to...
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Both short-run and long-run average cost
a given level of output/scale. What are the reasons behind such negative relationship
between average costs and output in the short and the long-run?
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