Question 2 The Spreading effect, Minimum Cost of Production Point and the Diminishing returns effect explain________ the shape of the LRATC Curve The shape of the production Fundtion The shape of the ATC curve The shape of the AFC curve
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Short-run average total cost shows the minimum average total cost for each level of output that can be produced has a minimum point at the firm's minimum cost for that relevant range of production might have a upward-sloping segment that indicates dis-economies of scale might have a flat portion that indicates a constant average cost over that range of output. might have a downward-sloping segment that indicates economies of scale
Crystal W.
Alter the interactive graph by changing the quantity produced along the horizontal axis and answer the questions. a. Starting from the lowest quantity and moving toward the minimum point of the average cost curve, what feature/component is the dominating effect on average total costs? b. As quantity produced moves past the minimum of average total cost, what is occurring with the curve's components? As output grows larger, eventually fixed costs are spread less and less amongst new units produced. As output grows larger, fixed costs are spread more and more amongst new units produced and are the dominating effect. As output grows larger, diminishing marginal returns to production reduce the productivity of your workers. As output grows larger, average variable costs are continuously decreasing due to economies of scale. As output grows larger, rising input costs drive your average variable costs to rise higher and higher
At the long-run quantity of output, where the LRATC curve is at its lowest point, it is tangent to the ________ of the corresponding short-run average total cost curve. A. minimum B. maximum C. right of the minimum D. left of the minimum 2. At quantities greater than the long-run least per-unit cost quantity of output, the long-run average total cost curve is tangent to the ________ of the corresponding short-run average total cost curve. A. minimum B. maximum C. right of the minimum D. left of the minimum 3. The slope of a long-run average total cost curve exhibiting diseconomies of scale is: A. zero. B. infinite. C. positive. D. negative.
Andrew D.
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