Modified True or False: State whether each statement is true or false. If the statement is false, briefly explain why it is so, and then restate it to make it true. The shapes of long-run cost curves follow directly from the assumption
Modified True or False: State whether each statement is true or false. If the statement is false, briefly explain why it is so, and then restate it to make it true. The shapes of long-run cost curves follow directly from the assumption
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter21: Production And Costs
Section: Chapter Questions
Problem 16QP
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Modified True or False: State whether each statement is true or false. If the statement is false, briefly explain why it is so, and then restate it to make it true.
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The shapes of long-run cost
curves follow directly from the assumption of a fixed factor of production, which implies diminishing returns. -
The optimal scale of plant is the scale of plant that maximizes average cost.
- In the long-run competitive equilibrium, each individual firm chooses a scale of operations that minimizes its long-run average cost.
-
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