MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781264207718
Author: Colander
Publisher: MCG CUSTOM
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Chapter 12, Problem 5IP
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Explain whether the draftsman argument is right or not.
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When economist Jacob Viner first developed the envelope relationship, he told his draftsman to make sure that all the marginal cost curves went through both (1) the minimum point of the short-run average cost curve and (2) the point where the short-run average total cost curve was tangent to the long-run average total cost curve. The draftsman told him it couldn’t be done. Viner told him to do it anyhow. Why was the draftsman right?
Label each of the following as sunk cost, opportunity cost, or incremental costs and briefly explain why: (Chapter 2)
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Chapter 12 Solutions
MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
Ch. 12.1 - Prob. 1QCh. 12.1 - Prob. 2QCh. 12.1 - Prob. 3QCh. 12.1 - Prob. 4QCh. 12.1 - Prob. 5QCh. 12.1 - Prob. 6QCh. 12.1 - Prob. 7QCh. 12.1 - Prob. 8QCh. 12.1 - Prob. 9QCh. 12.1 - Prob. 10Q
Ch. 12.A - Prob. 1QECh. 12.A - Prob. 2QECh. 12.A - Prob. 3QECh. 12.A - Prob. 4QECh. 12.A - Prob. 5QECh. 12.A - Prob. 6QECh. 12.A - Prob. 7QECh. 12 - Prob. 1QECh. 12 - Prob. 2QECh. 12 - Prob. 3QECh. 12 - Prob. 4QECh. 12 - Prob. 5QECh. 12 - Prob. 6QECh. 12 - Prob. 7QECh. 12 - Prob. 8QECh. 12 - Prob. 9QECh. 12 - Prob. 10QECh. 12 - Prob. 11QECh. 12 - Prob. 12QECh. 12 - Prob. 13QECh. 12 - Prob. 14QECh. 12 - Prob. 15QECh. 12 - Prob. 16QECh. 12 - Prob. 17QECh. 12 - Prob. 1QAPCh. 12 - Prob. 2QAPCh. 12 - Prob. 3QAPCh. 12 - Prob. 4QAPCh. 12 - Prob. 5QAPCh. 12 - Prob. 1IPCh. 12 - Prob. 2IPCh. 12 - Prob. 3IPCh. 12 - Prob. 4IPCh. 12 - Prob. 5IPCh. 12 - Prob. 6IP
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- If the marginal cost of production is greater than the average variable cost, what does this tell you about the nature of the average variable costarrow_forwardWhich of the following statements is a reflection of the fact that the average fixed cost falls as output rises? 1) The gap between the average total cost curve and the average variable cost curve becomes smaller as output rises. 2) The gap between the average total cost curve and the average variable cost curve remains the same as output rises. 3) The gap between the average total cost curve and the average variable cost curve becomes bigger as output rises. 4) The average total cost curve intersects the average variable cost curve in the long run.arrow_forwardExplain why the average variable cost curve and the average total cost curve get closer to each other as output increases.arrow_forward
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