(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
Chapter1: Making Economics Decisions
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Answer the given question with a proper explanation and step-by-step solution.
Please use graphs to illustrate answers as well as explain the answer please!!!!
![(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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ec56933-cca9-4452-93ce-2bbe60c67d5e%2F87c6c480-da46-4a95-8563-c875afa41d78%2Fgfwx6ep_processed.png&w=3840&q=75)
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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