Assume a standard marginal cost curve and average cost curve for firms producing cellular phones. Consider where the average and marginal cost curves will be when technological advances and economies of scale reduce the cost of producing cellular phones. This causes the average cost curve to shift down and the marginal cost curve to shift to the right. The new marginal cost curve will not intersect the new average cost curve
Assume a standard marginal cost curve and average cost curve for firms producing cellular phones. Consider where the average and marginal cost curves will be when technological advances and economies of scale reduce the cost of producing cellular phones. This causes the average cost curve to shift down and the marginal cost curve to shift to the right. The new marginal cost curve will not intersect the new average cost curve
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section12.3: The Various Measures Of Cost
Problem 3QQ
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