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.
Continuum of aggression. Based on an unpublished figure by Joanne DeSanto Iennaco.
The graph shows the effect of sonic tuning of the intake manifold runners. The longer runners ...
Two ROC Curves
Two Kinds of Forgetting Curves
Refer to (d) in the figure above. This rectifier arrangement