6 Long Run Cost Relationships The Following Graph Shows The Short Run Average Total Cost Curves And The Long Run Aver 1 (36.61 KiB) Viewed 55 times
6 Long Run Cost Relationships The Following Graph Shows The Short Run Average Total Cost Curves And The Long Run Aver 2 (38.13 KiB) Viewed 55 times
? 6. Long-run cost relationships The following graph shows the short-run average total cost curves and the long-run average total 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 total cost curve (LRATC); for example, Q₁ marks the point of tangency between ATC₁ and LRATC. The orange point on ATC, indicates the firm's current output level in the short run (Qs). COST PER UNIT ATC, LRATO ATC₂ ATC₂ OUTPUT ATC ATC In the long run, if the firm decides to keep output at its initial level, what will it likely do? ?
COST PER UNIT LRATO True no Cost in the Firm False ATC₂ OUTPUT ATC ATC In the long run, if the firm decides to keep output at its initial level, what will it likely do? Shift to operate on ATC₁ Shift to operate on ATC2 Stay on ATC3 Shut down ATC5 True or False: The minimum efficient scale is achieved at the minimum point on each average total cost curve.
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