(d)The long run average cost curve is U shaped because up to a certain point you have excess K/Land thereafter excess L/K.LRACTrue or falseQuantityThe long run expansion path for a firm must be horizontal.(e)KTrue or false (f)With a typical production function, diminishing returns before the diminishing average product isreached.ТРQty. of inputMPQty. of inputTrue or false

Since you have asked multiple questions, we will solve the first question for you. If you want any…

Answered: (d) The long run average cost curve is…

(d) The long run average cost curve is U shaped because up to a certain point you have excess K/L and thereafter excess L/K. ĻRAC Quantity True or false

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 23RQ: Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost,...

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Q: 0.5 Q=L³K

Question

(d)
The long run average cost curve is U shaped because up to a certain point you have excess K/L
and thereafter excess L/K.
LRAC
True or false
Quantity
The long run expansion path for a firm must be horizontal.
(e)
K
True or false

(f)
With a typical production function, diminishing returns before the diminishing average product is
reached.
ТР
Qty. of input
MP
Qty. of input
True or false

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