Author Question: Designing your products with proprietary technology, is a way to A) protect intellectual ... (Read 66 times)

bobbysung · **on:** Jul 1, 2018

Designing your products with proprietary technology, is a way to

A) protect intellectual property.
B) increase switching costs for your customers.
C) grandfather in your products.
D) decrease your marginal cost.

Question 2

Explain why the long-run total cost curve, not the short-run total cost curve, shows the lowest cost of producing any level of output. Is there an exception?

What will be an ideal response?

mcomstock09 · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

B

Answer to Question 2

In the long run, all costs are variable so the firm can select the least-cost mix of all inputs to produce any given quantity. The exception would be at minimum long-run cost where min. LR and min. SR costs are equal.