This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Are the short-run and long-run average cost curves U-shaped for the same reason? Explain. What ... (Read 119 times)

chads108

  • Hero Member
  • *****
  • Posts: 507
on: Jun 29, 2018
Are the short-run and long-run average cost curves U-shaped for the same reason? Explain.
 
  What will be an ideal response?

Question 2

What does a labor supply curve represent? What does it look like?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bpool94

  • Sr. Member
  • ****
  • Posts: 354
Reply #1 on: Jun 29, 2018
Answer to Question 1

The short-run average cost curve is U-shaped because of the law of diminishing returns. The long-run supply curve is U-shaped because of diseconomies of scale.

Answer to Question 2

A labor supply curve is a diagram that shows the quantity of labor supplied at different wage rates. Its shape depends on how households react to changes in the wage rate. It will typically slope upwards as long as the substitution effect dominates. However, there is a possibility that the labor supply curve could bend backwards at higher wages if the income effect dominates the substitution effect.


chads108

  • Member
  • Posts: 507
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

komodo7

  • Member
  • Posts: 322
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Impacts of glaciers on landscapes can be seen as (a) a U-shaped valley in Labrador, (b) a drumlin fi Impacts of glaciers on landscapes can be seen as (a) a U-shaped valley in Labrador, (b) a drumlin fi
The rate of evolution in short­ and long­lived plants The rate of evolution in short­ and long­lived plants
Long-Term Potentiation and Long-Term Depression Long-Term Potentiation and Long-Term Depression
Feng Mengbo, Long March: Restart. Feng Mengbo, Long March: Restart.
Average Annual Growth Rates of Population by Country Group Average Annual Growth Rates of Population by Country Group
Survivorship curves. Survivorship curves.
Video: Epinephrine/NE (heart rate, altered blood flow, glycogenolysis & bronchodilation)

For a complete list of videos, visit our video library