Draw a long-run average cost curve that first exhibits increasing returns to scale (economies of scale), then constant returns to scale, and finally decreasing returns to scale (diseconomies of scale). Label each region.
What will be an ideal response?
Initially, LRAC declines as output increases when there are EOS (IRS). LRAC becomes flat when there are CRS. Finally, LRAC rises once DOS (DRS) set in. See Figure 7-20
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Economics
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A characteristic of monopolistic competition is that each firm
A) faces perfectly elastic demand. B) faces a downward-sloping demand curve. C) has a perfectly elastic supply. D) has a perfectly inelastic supply.
Economics
Explain Mundell's four conditions for adopting a single currency
What will be an ideal response?
Economics