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How is a long-run average cost curve different from a short-run average cost curve?
Wiki User
∙ 13y ago
The long-run average cost curve is longer.
Wiki User
∙ 13y ago
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If Energy is a fixed cost and energy prices rise what happens to the companys average total cost curve?
The curve will be shifted upwards, but because it is an AVERAGE cost curve, the shift will be of a different value for different places on the curve. The shift will be very dramatic at small quantities of production, significant at larger quantities, and almost unnoticeable at very large quantities.
What is the relationship between long-run average cost curve and short-run average cost curve?
what is the relationship between long run average cost curve and short run average cost curve?
6 If the average total cost curve is falling what is necessarily true of the marginal cost curve If the average total cost curve is rising what is necessarily true of the marginal cost curve?
When average total cost curve is falling it is necessarily above the marginal cost curve. If the average total cost curve is rising, it is necessarily below the marginal cost curve.
Why marginal product curve intersect the average product curve at the maximum?
of average product.
Why is the long run average cost curve known as the envelope curve or planning curve?
Long run average cost curve is known as envelope curve because it is formed by enveloping the short run average cost curves and it helps the entrepreneur in long term planning that is why it is also called planning curve.
What curve shows the amount inspected by both the consumer and the producer for different percent nonconforming value?
Average total inspection curve ( ATI curve)
If Energy is a fixed cost and energy prices rise what happens to the companys average total cost curve?
The curve will be shifted upwards, but because it is an AVERAGE cost curve, the shift will be of a different value for different places on the curve. The shift will be very dramatic at small quantities of production, significant at larger quantities, and almost unnoticeable at very large quantities.
What is the relationship between long-run average cost curve and short-run average cost curve?
what is the relationship between long run average cost curve and short run average cost curve?
6 If the average total cost curve is falling what is necessarily true of the marginal cost curve If the average total cost curve is rising what is necessarily true of the marginal cost curve?
When average total cost curve is falling it is necessarily above the marginal cost curve. If the average total cost curve is rising, it is necessarily below the marginal cost curve.
Why marginal product curve intersect the average product curve at the maximum?
of average product.
Why is the long run average cost curve known as the envelope curve or planning curve?
Long run average cost curve is known as envelope curve because it is formed by enveloping the short run average cost curves and it helps the entrepreneur in long term planning that is why it is also called planning curve.
What is Another name for firms demand curve?
Average revenue curve
What is the relationship between marginal cost and average cost curves?
Margianal cost curve crosses the average total cost curve at the lowest point on the average total cost curve to be socially and ecomonical efficient.
Why is average cost and average variable cost are both you shaped?
the average variable cost curve and average cost curve are u- shaped because of the law of variable proportions.
What is a hill shaped curve centered around an average value called?
bell curve
A firm's marginal cost curve above the average variable cost curve is also?
A firm's short run supply curve
How is a market supply curve similar to and different from an individual supply curve?
how is a market supply curve similar to and diffrent from an individual supply curve
