U-shaped long run average cost curve for the firm
Part I. What assumption gives rise to a U-shaped long run average cost curve for the firm? (Describe shortly)Part II. What ways firms in on oligopoly try to elminate or control the consequences of this charcteristic?
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From the figure shown below, a monopsonist's supply curve is the same as the market supply curve, and the marginal revenue product curve of team owners, the extra revenue generated by an additional worker, is represented by MRP.
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Part I. What assumption gives rise to a U-shaped long run average cost curve for the firm? (Describe shortly) Part II. What ways firms in on oligopoly try to elminate or control the consequences of this charcteristic?
Q1. Suppose a firm's short-run average cost curve is U shaped: what does this imply about the marginal return to the variable input?
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What Advice should be given for Short run and Long run and why? If output rises $10 dollar more what gonna happen in Short run and Long run?
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