In the short run, the average total cost curve is U-shaped because ofdiminishing marginal returns and then increasing marginal returns as more labor is hired.economies and diseconomies of scale.constant average fixed costs as output is increased.increasing marginal returns and then diminishing marginal returns as more labor is hired. In the long run, the average total cost curve is U-shaped because ofeconomies and diseconomies of scale.diminishing marginal returns and then increasing marginal returns as more labor is hired.increasing marginal returns and then diminishing marginal returns as more labor is hired.constant average fixed costs as output is increased.

In general, when talking about a competitive firm, it can be seen that a firm is facing a U-shaped…

In the short run, the average total cost curve is U-shaped because of Oooo diminishing marginal returns and then increasing marginal returns as more labor is hired. O economies and diseconomies of scale. constant average fixed costs as output is increased. O increasing marginal returns and then diminishing marginal returns as more labor is hired.

In the short run, the average total cost curve is U-shaped because of Oooo diminishing marginal returns and then increasing marginal returns as more labor is hired. O economies and diseconomies of scale. constant average fixed costs as output is increased. O increasing marginal returns and then diminishing marginal returns as more labor is hired.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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c. Does the firm operate in the short run or long run? Why? d. What is the efficient scale of the firm?
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Am I solving correctly? I don’t really remember how to derive the AC equation or graph these values that I have found.
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