Long run, Short Run


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Long run, Short Run 1 answer below » Attached is my assignment that I need help with. There are Two tabs, each with a couple problems on them. I need to be able to show my work/excel formulas/graphs on these problems in order to receive credit. Please use Excel. Thanks for your help Document Preview: 0
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Industry studies often suggest that firms may have
long-run average cost curves that show some output
range over which there are economies of scale
and a wide range of output over which long-run
average cost is View complete question » Attached is my assignment that I need help with. There are Two tabs, each with a couple problems on them. I need to be able to show my work/excel formulas/graphs on these problems in order to receive credit. Please use Excel. Thanks for your help Document Preview: 0
1.5
8

Industry studies often suggest that firms may have
long-run average cost curves that show some output
range over which there are economies of scale
and a wide range of output over which long-run
average cost is constant; finally, at very high output,
there are diseconomies of scale.
a. Draw a representative long-run average cost
curve, and indicate the minimum efficient scale.
b. Would you expect that firms in an industry like
this would all produce about the same level of
output? Why?
The following graph shows economies of scale in
the beer brewing industry.
$
a. What does this graph tell us about the nature
of economies of scale in the beer brewing
industry?
b. What are the particular problems associated
with the firm represented by the SATC curve
shown in the graph? Does it represent a firm
that would be able to survive over time?

SRAC
LRAC
Output
(millions of barrels) Attachments: Chapter-6-Pro….xlsx View less » Sep 30 2015 09:02 AM

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