Explain how the long-run average cost curve is constructed graphically
What will be an ideal response?
The long-run average cost curve is constructed as the envelope to (a curve tangent to) all the possible short-run average cost curves that correspond to different plant sizes.
Economics
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A curve that shows all the combinations of two inputs, such as labor and capital, that will produce the same level of output is called
A) a budget line. B) an isocost line C) an isoquant. D) an optimal input combination curve.
Economics
Future generations will be hurt by a high national debt if incurring the debt
a. was done to pay Social Security recipients. b. resulted in heavy commitments to bail out business firms. c. increased formation of capital. d. slowed the formation of capital.
Economics