Trusted by Students Everywhere
Why Choose Us?
0% AI Guarantee

Human-written only.

24/7 Support

Anytime, anywhere.

Plagiarism Free

100% Original.

Expert Tutors

Masters & PhDs.

100% Confidential

Your privacy matters.

On-Time Delivery

Never miss a deadline.

Are all points on the long-run average cost curve productive efficient?

Accounting Dec 08, 2020

Are all points on the long-run average cost curve productive efficient?

Expert Solution

All the points on the long run average cost curve are not productive efficient. The lowest point on the long-run average cost curve is productive efficient. It shows the level of output that can be produced at a minimum cost when all the factors of production are variable.

The long run average cost curve is U-shaped which shows the falling part which means the average cost is falling with the increase in production due to economies of scale. Minimum point is productive efficient and the rising part shows the inefficiency of factors of production after a certain level which causes diseconomies of scale.

Therefore, all points on the long-run average cost curve are not productive efficient

Archived Solution
Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In
Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution
Get Custom Quote
Secure Payment