« previous next »

Author Question: Why is the long-run average total cost (LRATC) curve called the planning ... (Read 40 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?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

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

Glioma. (a) Illustration of a large glioma (colored area) within the left cerebral hemisphere in a s Glioma. (a) Illustration of a large glioma (colored area) within the left cerebral hemisphere in a s
Earth’s history is divided into nested sets of time--eons, eras, periods, and epochs--and is called Earth’s history is divided into nested sets of time--eons, eras, periods, and epochs--and is called
Some ignition coils are electrically connected, called married (top figure), whereas others use ... Some ignition coils are electrically connected, called married (top figure), whereas others use ...
Average real hourly wages (2010 dollars) by education level, full-time workers aged 17 to 34 in 2011 Average real hourly wages (2010 dollars) by education level, full-time workers aged 17 to 34 in 2011
A 23 kg mass is connected to a nail on a frictionless table by a massless string 1.3 m long. ... A 23 kg mass is connected to a nail on a frictionless table by a massless string 1.3 m long. ...
A pipe that is 0.46 m long and open at both ends vibrates in the second overtone with a ... A pipe that is 0.46 m long and open at both ends vibrates in the second overtone with a ...
Video: Bulk flow - Factors that influence bulk flow

For a complete list of videos, visit our video library