mess a diagram showing a U-shaped average cost function, and indicate (draw) the location of the marginal cost function and the average vari equal cost curve on the diagram. What is the most efficient level of output at which to let out in the shortrun? At what point would you actually want to upgrade in the short-run? How much profit does Terrapin Widgets make in the short run? At what point would you shut down production in the short run?
Indicate your options for the hanker run, when you can channel the size of your be. What would the cost functions and supply curve look ilk in the long run, given that you produce widgets under unending returns to scale in the long run (in other words, what are their general shapes)?
What criteria would use when determining the optimal size of your plant in the long run?
Demand, if u have unalterable return of scale no matter how big u r u will always be able to maximize production… in recession u would produce less by laying off workers and (only if demand diminishes)
What add of profit do you expect to make in the long run? 0 because if its a comp market with no monopoly people will enter the market and bring u towards u have cost
How would your answers to the questions in the preceding paragraph assortment if the long-run average cost curve as U-shaped with a minimum point at the output Q*?
same function but u shaped long run (not acquire constant return to scale and u will produce at Q. once ppl enter into the market they will drive u to q* until u...If you want to get a full essay, do it on our website: Orderessay
If you want to get a full essay, wisit our page: write my essay .
No comments:
Post a Comment