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 117 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
Great answer, keep it coming :)

EAN94

  • Member
  • Posts: 307
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Patients who have undergone chemotherapy for the treatment of cancer often complain of a lack of mental focus; memory loss; and a general diminution in abilities such as multitasking, attention span, and general mental agility.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

This Black-browed Albatross has been hooked on a long-line. This Black-browed Albatross has been hooked on a long-line.
Bacteria may be named for their morphology (shape): cocci (spherical), bacilli (rod shaped), or ... Bacteria may be named for their morphology (shape): cocci (spherical), bacilli (rod shaped), or ...
Early geologists discovered evidence of past glaciations in U-shaped valleys Early geologists discovered evidence of past glaciations in U-shaped valleys
Average Annual Growth Rates of Population by Country Group Average Annual Growth Rates of Population by Country Group
When operating your own business, it is wise to know your cost of capital and that of the ... When operating your own business, it is wise to know your cost of capital and that of the ...
A bell-shaped, or “normal,” curve shows the distribution of phenotypes for traits controlled by ... A bell-shaped, or “normal,” curve shows the distribution of phenotypes for traits controlled by ...
Video: Language Areas Animation

For a complete list of videos, visit our video library