Define and graph long-run costs.
-Indicate true, false, or uncertain for the following statements, and explain why:
a. In the long run, advancing technology makes the optimal plant size smaller.
b. The long-run average cost envelope curve is tangent to the minimum points of the short-run average total cost curves.

Question

Quizplus · Accepted Answer

The Answer of Define and graph long-run costs.
-Indicate true, false, or uncertain for the following statements, and explain why:
a. In the long run, advancing technology makes the optimal plant size smaller.
b. The long-run average cost envelope curve is tangent to the minimum points of the short-run average total cost curves.

Define and Graph Long-Run Costs