
Historically,empirical evidence showed that it was more cost effective to have a single generator of electricity serve a particular region's electricity needs than to have several smaller units compete against each other.More recently,technological advances have occurred in the generation of electricity that allow much smaller generating units to produce electricity for the same average cost as much larger units.Explain how this change would be reflected in the firm's long-run average cost curve and minimum efficient scale.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q85: Most of the empirical research on long-run
Q86: Explain how "learning by doing" and transportation
Q87: Assume that firms A and B have
Q88: What are the two primary factors that
Q89: Over the past several decades,technological change has
Q91: If the inputs to a production process
Q92: Explain how labor resistance and political and
Q93: Assume a new technology is developed that
Q94: Use the firm's long-run cost-minimizing decision rule
Q95: Economists describe short-run decisions as "constrained" decisions,while
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents