How is a long-run average cost curve different from a short-run average cost curve? How are they related?
What will be an ideal response?
The short-run average cost curve assumes a given plant size (or some other fixed cost), whereas the long-run average cost curve assumes no fixed scale of plant. The long-run average cost curve is the lower envelope of a series of short-run average cost curves.
Economics
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The given nondiscriminating monopolist should set its price at:
A. $300.
B. $250.
C. $200.
D. $150.
Economics
Modern antitrust policy began in response to
A. abuses of market power in the oil industry. B. the inability of railroads to compete effectively with the new trucking industry. C. the charge that the rights of big business were not adequately protected. D. attempts by business leaders to pack Congress with corrupt legislators.
Economics