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Flashcards in General 5 Deck (7)
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1
Q

under the condition of the perfect competition, in long run the company most likely earn

A

Normal profits

2
Q

EOS, Economics of Scale

A

It is operating at the point of the LRAC curve where the slope is negative

3
Q

Diseconomies of scale most likely result from

A

overlap of business function

4
Q

LRAC curve

A

The economies of scale curve is a long-run average cost, or LRAC, curve; it allows all factors of production to change

5
Q

Short-run average cost curves assume the

A

existence of fixed costs and only variable costs are allowed to change.

6
Q

The long-run average cost (LRAC) curve shows the firm’s

A

the lowest cost per unit at each level of output, assuming that all factors of production are variable

7
Q

Long-run is when

A

All fixed inputs are variable