In the lemonade stand industry, Lucia is representative of a low-cost producer, and Carlos is representative of a high-cost producer. The minimum average total cost of the high-cost producers is $5. The low-cost producers have a long-run total cost curve given by LTC = 5Q –1.5Q² + 0.33Q³, where LMC = 5 - 3Q + Q². In this case, Lucia can earn an economic rent of $. as a low-cost producer. 0 6 4.50 7.50 O O O O

In the lemonade stand industry, Lucia is representative of a low-cost producer, and Carlos is representative of a high-cost producer. The minimum average total cost of the high-cost producers is $5. The low-cost producers have a long-run total cost curve given by LTC = 5Q –1.5Q² + 0.33Q³, where LMC = 5 - 3Q + Q². In this case, Lucia can earn an economic rent of $. as a low-cost producer. 0 6 4.50 7.50 O O O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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