« previous next »

Author Question: Why is the long-run average total cost (LRATC) curve called the planning ... (Read 48 times)

big1devin

  • Hero Member
  • *****
  • Posts: 583
on: Jun 30, 2018
Why is the long-run average total cost (LRATC) curve called the planning curve?

Question 2

What are the earnings of a resource with a perfectly elastic supply curve called?
 a. Transfer earnings
  b. Dividends
  c. Economic rent
  d. Capital gain
  e. Interest


SomethingSomething

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 30, 2018
Answer to Question 1

The LRATC curve is often called a planning curve, because it represents the cost data relevant to the firm when it is planning policy relating to scale of operations, output, and price over a long period of time. At a particular time, a firm already in operation has a certain plant and must base its current price and output decisions on the costs with the existing plant. However, when the firm considers the possibility of adjusting its scale of operations, long-run cost estimates are necessary.

Answer to Question 2

a


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Effects of Living in Total Darkness on Monoaminergic Systems Effects of Living in Total Darkness on Monoaminergic Systems
Detonation is a secondary ignition of the air–fuel mixture. It is also called spark knock or ... Detonation is a secondary ignition of the air–fuel mixture. It is also called spark knock or ...
A typical ECT sensor temperature versus voltage curve. A typical ECT sensor temperature versus voltage curve.
Uncover the back down to the waist. Stand at the head to apply lubricant to the back using long ... Uncover the back down to the waist. Stand at the head to apply lubricant to the back using long ...
Dose-response curve with threshold Dose-response curve with threshold
question in cost accounting question in cost accounting
Video: Bone tissue types - compact and spongy

For a complete list of videos, visit our video library