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Author Question: The figure below shows a family of cost curves for a firm. The subscripts 1, 2, and 3 for the SRATC ... (Read 27 times)

byomi

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on: Oct 12, 2022

The figure below shows a family of cost curves for a firm. The subscripts 1, 2, and 3 for the SRATC curves refer to different plant sizes.



FIGURE 8-2

Refer to Figure 8-2. Suppose this firm is producing at point B. Why might this firm continue to produce at point B, rather than immediately move to point C and produce the same level of output (Q2), at a lower cost?


◦ The firm may choose to remain at point B until the price of its output increases enough to justify building a new plant.
◦ The firm cannot produce at point C because there is no SRATC curve through this point.
◦ If this firm continues to produce at point B for any period of time, it must be because it is not profit-maximizing.
◦ There can be a significant time delay while the firm readjusts its plant size, during which time it remains at point B.
◦ If this firm continues to produce at point B for any period of time, it must be because it is not cost-minimizing.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by byomi on Oct 12, 2022

aublw

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Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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byomi

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Reply 2 on: Oct 12, 2022
Great answer, keep it coming :)

cdmart10

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Reply 3 on: Yesterday
Excellent

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