Asked by
Lindsey Backhaus
on Nov 17, 2024
Verified
Because of the greater flexibility that firms have in the long run, all short-run cost curves lie on or above the long-run curve.
Short-Run Cost Curves
Graphical representations that show the relationship between a firm's costs and output levels in the short term.
Long-Run Curve
The graphical representation in economics of the relationship between output and input when all inputs are variable, showing potential economies of scale.
- Acquire knowledge on the effect of fixed and variable costs on short-run and long-run cost trajectories.
Verified Answer
FS
Learning Objectives
- Acquire knowledge on the effect of fixed and variable costs on short-run and long-run cost trajectories.