The following graph shows the short-run average total cost curves and the long-run average cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average cost curve (LRAC); fc example, Q, marks the point of tangency between ATC, and LRAC. The orange point on ATC, indicates the firm's current output level in the short run (Q). ATC, ATC ATC ATC LRAC OUTPUT PER PERIOD COST PER UNIT

The following graph shows the short-run average total cost curves and the long-run average cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (ATC) and the long-run average cost curve (LRAC); fc example, Q, marks the point of tangency between ATC, and LRAC. The orange point on ATC, indicates the firm's current output level in the short run (Q). ATC, ATC ATC ATC LRAC OUTPUT PER PERIOD COST PER UNIT

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A student has just written on an exam that, in the long run, fixed cost will make the average total cost curve slope downward. Why will the professor mark it incorrect? In the long run, fixed cost increases as firms build new plants and purchase new capital. This means that the average total cost curve will eventually slope upward. In the long run, firms have no fixed cost—all costs would be variable. The shape of the long-run average total cost curve is determined by economies of scale. In the long run, fixed cost decreases as costs are spread out over a greater quantity of output. Declining fixed cost accounts for the downward-sloping average total cost curve. In the long run, there are no fixed costs, meaning the average total cost curve shifts down.
Then, plot points along the portion of the firm's short-run supply curve that corresponds to prices where there is positive output.
the long run supply curve in different cost industries..... help please are my answers correct? also where do i place the long run supply curve ??
Let F be the fixed cost of production, let VC be the variable cost of production, C be the total cost, MC be the marginal cost, AFC, the average fixed cost, AVC, the average variable cost, and AC, the average cost. Complete the following cost table. (Enter numeric responses rounded to two decimal places.) Output (q) F VC MC AFC AVC AC 1 $250 $64 $314 $64 $250.00 $64.00 $314.00 2 112 362 48 125.00 56.00 181.00 3 250 144 394 32 83.33 48.00 4 250 160 16 62.50 40.00 102.50 5 250 192 442 32 50.00 88.40 6 250 490 48 41.67 40.00 81.67 7 250 304 554 35.71 43.43 79.14 8 250 384 634 80 48.00 79.25 9 250 480 730 96 27.78 53.33 81.11 10 250 592 112 25.00 59.20