Analyze Costs in the Long run

Select the correct statement

1. In the long run, the efficiency or the productivity can be enhanced by increasing and altering combinations of labor and capital.
2. In the short run, the efficiency or the productivity can be enhanced by increasing and altering combinations of labor and capital.
3. Nothing changes in the long run
4. None of the above

All inputs are variable in the long run . State your comment

_________ refers to a situation where if the production increases, the cost of producing that output also increases

__________ refers to a situation in which if the production goes up, the cost goes down.

At what point on the long run average cost curve (LRAC) will the firm produce?

In the given graph, identify the point of economies of scale

What is a long run average cost curve?

Does a shift in long run average cost change distribution of firms in the market?

Does law of diminishing marginal productivity apply in long run?

What is the shape of a long run average cost curve

In the given graph, identify the point of diseconomies of scale

If the LRAC is flatter and has multiple points, where will the firm produce?

In the given graph, where will the firm produce?

What causes a shift in long run average cost curve?

The combination of short run average cost curves is called____