(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 Quantity (e) The long run expansion path for a firm must be horizontal. K True or false True or false
(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 Quantity (e) The long run expansion path for a firm must be horizontal. K True or false True or false
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 12SQ
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Please use graphs to illustrate answers as well as explain the answer please!!!!
Transcribed Image Text:(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
Quantity
(e) The long run expansion path for a firm must be horizontal.
K
True or false
True or false
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