Supply Side-LRShape

Supply Side-LRShape - SC. Shapes-Long Run (ShCost Curves...

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Unformatted text preview: SC. Shapes-Long Run (ShCost Curves upply Side of Long-Run apes) 84#$%&#*4*'/"!"#(0#"%(,$:,34#.("$"5#)&#0(342#$%*$#$%&#"(3,.&#(0#*#H:"%*1&2#*+&,*-& .("$#.3,+&#%*2#$(#2(#)!$%#2!6!4!"%!4-#,&$3,4"# ;E&.*3"&#"(6&#!413$"#)&,&#0!9&2@7##84#$%& '(4-:,345#1,&"36*E'/#*''#!413$"#.*4#E&#+*,!&27##I&4.&5#$%&,&#*,&#1($&4$!*''/#4(#2!6!4!"%!4,&$3,4"7##J%*$#!"#$%&#"%*1&#(0#$%&#'(4-:,34#*+&,*-&#.("$#.3,+&#;C=>?@K##8"#!$#H:"%*1&2#(, 4($K B%&#"%*1&#(0#$%&#C=>?#2&1&42"#!4#1*,$#(4#$%&#1,(23.$!(4#034.$!(47##84#1*,$!.3'*,5 !$# 2&1&42"# (4# )%&$%&,# $%&# 1,(23.$!(4# %*"# .(4"$*4$# ,&$3,4"# $(# ".*'&# ;?=<@5# !4.,&*"!4,&$3,4"#$(#".*'&#;8=<@5#(,#2&.,&*"!4-#,&$3,4"#$(#".*'&#;L=<@7##=&$3,4"#$(#".*'&#,&0&,#$(#$%& .*"&#!4#)%!.%#*''#!413$"#*,&#!4.,&*"&2#!4#1,(1(,$!(47##?(4"!2&,#$%&#1,(23.$!(4#034.$!(4M 3 !"#"$%&'() !"#"$%&'() *+,,-./"0120"233"45,+0."26/"4576/2./8"9:"01/".2;/",6-,-604-5";< *+,,-./"0120"233"45,+0."26/"4576/2./8"9:"01/".2;/",6-,-604-5";< !="#"$%;&';()> !="#"$%;&';()> 2>""?$"01/"5/@"3/A/3"-$"-+0,+0"4576/2./."9:"01/".2;/",6-,-604-5"2."01/"4576/2./"45 2>""?$"01/"5/@"3/A/3"-$"-+0,+0"4576/2./." 9:"01/".2;/",6-,-604-5"2."01/"4576/2./"45 45,+0."%0120"4.'"!="#";!)'"01/5"@/".2:"0120"01/6/"26/"constant returns to scale"%BC*)>""D-6 45,+0."%0120"4.'"!="#";!)'"01/5"@/".2:"0120"01/6/"26/"constant returns to scale"%BC*)>""D-6 /E2;,3/'"4$";"#"F'"01/5"233"45,+0."26/"8-+93/8>""?$"01/"5/@"3/A/3"-$"-+0,+0"4."0@47/"2."94G"2. /E2;,3/'"4$";"#"F'"01/5"233"45,+0."26/"8-+93/8>""?$"01/"5/@"3/A/3"-$"-+0,+0"4."0@47/"2."94G"2. 01/"-64G4523'"@/"12A/"BC*>"" 01/"-64G4523'"@/"12A/"BC*>"" 9>""?$"01/"5/@"3/A/3"-$"-+0,+0"!="4576/2./."3/.."0125",6-,-604-520/3:"0-"01/"4576/2./ 9>""?$"01/"5/@"3/A/3"-$"-+0,+0"!="4576/2./."3/.."0125",6-,-604-520/3:"0-"01/"4576/2./ 45"45,+0."%0120"4.'"!="H"";!)'"01/5"@/".2:"01/6/"26/" decreasing returns to scale.""""D-6 45"45,+0."%0120"4.'"!="H"";!)'"01/5"@/".2:"01/6/"26/" decreasing returns3/.."0125"0@47/ /E2;,3/'"4$";"#"F'"01/5"233"45,+0."26/"8-+93/8>""?$"01/"5/@"3/A/3"-$"-+0,+0"4." to scale.""""D-6 /E2;,3/'"4$";"#"F'"01/5"233"45,+0."26/"8-+93/8>""?$"01/"5/@"3/A/3"-$"-+0,+0"4."3/.."0125"0@47/ 2."94G"2."01/"-64G4523'"@/"12A/"IC*>" 2."94G"2."01/"-64G4523'"@/"12A/"IC*>" 7>"?$""01/"5/@"3/A/3"-$"-+0,+0"!="4.";-6/"0125";!'"01/5"@/".2:"01/6/"26/"increasing returns 7>"?$""01/"5/@"3/A/3"-$"-+0,+0"!="4.";-6/"0125";!'"01/5"@/".2:"01/6/"26/"increasing returns to scale."""D-6"/E2;,3/'"4$";"#"F'"01/5"233"45,+0."26/"8-+93/8>""?$"01/"5/@"3/A/3"-$"-+0,+0"4. to scale."""D-6"/E2;,3/'"4$";"#"F'"01/5"233"45,+0."26/"8-+93/8>""?$"01/"5/@"3/A/3"-$"-+0,+0"4. ;-6/""0125"0@47/"2."94G"2."01/"-64G4523'"@/"12A/"?C*>" ;-6/""0125"0@47/"2."94G"2."01/"-64G4523'"@/"12A/"?C*>" Example:"" Example:"" J1/"/.04;20/8",6-8+704-5"$+5704-5"$-6"-43",4,/345/."4.< J1/"/.04;20/8",6-8+704-5"$+5704-5"$-6"-43",4,/345/."4.< !"#"K>LM>NOIP>ON' !"#"K>LM>NOIP>ON' @1/6/"!"4."01/"5+;9/6"-$"9266/3."%45"PQQQR.)",+;,/8",/6"82:"'"M"4."01/"1-6./,-@/6"-$"01/ @1/6/"!"4."01/"5+;9/6"-$"9266/3."%45"PQQQR.)",+;,/8",/6"82:"'"M"4."01/"1-6./,-@/6"-$"01/ /5G45/"%45"PQQQR.)"258"I"4."01/"842;/0/6"-$"01/",4,/345/"4571/.>""?$"M"258"I"@/6/"9-01 /5G45/"%45"PQQQR.)"258"I"4."01/"842;/0/6"-$"01/",4,/345/"4571/.>""?$"M"258"I"@/6/"9-01 ;+304,34/8"9:"F'"01/5 ;+304,34/8"9:"F'"01/5 !="#"K>L%FM)>NO%FI)P>ON"#"K>L"="F>NO"S"P>ON"M>NOIP>ON"#"FF>P"="K>LM>NO>NO P>ON"#"L>N! 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