12 Economic Costs (1)

Inputs diseconomies of scale output increases by a

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: its inputs by. inputs Constant Returns to Scale: Output increases by Constant the same % that a firm increases its inputs by. 12 12 Average Total Costs Long-Run ATC Curve ATC-1 Constant Returns to Scale where LRATC Curve is flat ATC-5 ATC-2 ATC-3 ATC-4 Long-Run ATC Diseconomies of Scale where LRATC Curve is sloped upward Economies of Scale where LRATC Curve is sloped downward Output The long-run ATC curve just “envelopes” the short run ATCs 13 13...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online