Answered: 10 true or false Long-run average…

10 true or false Long-run average cost slopes downward over a range of output where a firm experiences decreasing returns to scale

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 15SQ

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Long-run average cost slopes downward over a range of output where a firm experiences decreasing returns to scale

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Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost, variable costs, and marginal cost?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
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Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?
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