Production Cost in the Long-Run:
a) Envelope Curve:
b) LRMC Curve:
At point c, LRAC = LRMC = SACB = SMCB
c) Returns to Scale and LRAC Curve:
(1) Constant Returns to Scale
(2) Increasing Returns to Scale (Economies of Scale or Scale Economy)→Natural Monopoly
(3) Decreasing Returns to Scale (Diseconomies of Scale)
d) Economies of Scope:
TC(Q1, Q2)< TC(Q1, 0) + TC(0, Q2)
ES= {TC(Q1)+ TC(Q2) -TC(Q1,Q2)}/TC(Q1, Q2), ES > 0 (Scope Economies happen) Sources of Scope Economies: Shared common inputs, cost complementation (oil and benzene, oil and natural gas, computer software and computer support etc.)
e) Economies of Experience (Learning by Doing):
Economies of scale (EOS) and Economies of Experience (EOE) are different. EOS refer to the ability to perform activities at a lower unit cost when those activities are performed on a larger scale at a given point in time. EOE refer to reductions in unit costs due to accumulating experience over time. EOS may be substantial even when EOE is minimal. This is probable to be the case in mature, capital-intensive production processes, such as aluminum can manufacturing. Likewise, EOE may be substantial even when EOS are minimal as in such complex labor-intensive activities as the production of handmade watches.
Firms that don’t correctly distinguish between EOS and EOE draw incorrect inferences about the benefits of size in a market. For example, if a firm has low average costs because of EOS, reductions in the current volume of production will increase unit costs.
If the low average costs are the results of cumulative experience the firm may be able to cut back current production volumes without raising its average costs.
Latest technology based Microeconomics Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Microeconomics help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Microeconomics, project ideas and tutorials. We provide email based Microeconomics help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Microeconomics. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Microeconomics Homework help and assignment help services. They use their experience, as they have solved thousands of the Microeconomics assignments, which may help you to solve your complex issues of Microeconomics. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
tutorsglobe.com hypersensitivity-immune complex assignment help-homework help by online classification of hypersensitivity reactions tutors
tutorsglobe.com zygomycotina assignment help-homework help by online division eumycota tutors
Put a full stop to all academic uncertainties by hiring our top-rated Geography of Cultural Studies Assignment Help tutors!
it is supposed that the winding is short pitched through 1 slot. hence, coil span = 11, in terms of slots, or yb = 23 in terms of coil sides.
Theory and lecture notes of Mathematical Induction all along with the key concepts of Regions of a Circle, Principle of Mathematical Induction, Annotated illustration of Mathematical Induction and Pattern Recognition. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Mathematical Induction.
www.tutorsglobe.com offers styles of architecture homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
the coils having a pair of poles phase groups within adjacent poles are concentric. these coils within two adjacent poles form one coil group and so there is one coil group each pair of poles.
tutorsglobe.com digestion of nucleic acids assignment help-homework help by online digestion tutors
www.tutorsglobe.com offers software development process models homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
theory and lecture notes of production theory all along with the key concepts of production technology, tpl, mpl and apl, diminishing marginal returns. tutorsglobe offers homework help, assignment help and tutor’s assistance on production theory.
Color Chemistry and Technology tutorial all along with the key concepts of electromagnetic radiation, compound promotes electrons, conjugated double bonds, Three rings fused together
efficiency ratios are employed to try to assess how effectively the several resources of the business are managed.
tutorsglobe.com law of purity of gametes assignment help-homework help by online laws of mendel tutors
With top-rated Inter-Device Communication Assignment Help by your side, impending deadlines & task complexity is not an issue anymore.
Theory and lecture notes of Exploring Data: Nonlinear Models all along with the key concepts of TI-82/TI-83 Models, TI-85 Models, Least Squares Regression Model, TI-82/TI-83, Correlation Coefficient. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Exploring Data: Nonlinear Models.
1948298
Questions Asked
3689
Tutors
1464513
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!