![]() For example, The Wacky Willy Company has one short-run average total cost curve corresponding to a 10,000 square foot factory, another short-run average total cost curve corresponding to a 10,001 square foot factory, another for a 10,002 square foot factory, etc. The long-run average cost curve can be derived by identifying the factory size (or quantity of capital) that can produce each quantity of output at the lowest short-run average total cost. As such, when the quantity of the fixed input changes, the short-run average total cost curve shifts to a new location. The key to the derivation of the long-run average cost curve is that each short-run average total cost curve is constructed based on a given amount of the fixed input, usually capital. LONG-RUN AVERAGE COST CURVE, DERIVATION: The long-run average cost curve is the envelope of an infinite number of short-run average total cost curves, with each short-run average total cost curve tangent to, or just touching, the long-run average cost curve at a single point corresponding to a single output quantity. A bull market usually occurs because investors see a healthy, vibrant, profitable economy on the horizon. In other words, the stock market is into an extended period of "charging ahead" like a mad bull. AmosWEB means Economics with a Touch of Whimsy!īULL MARKET: A condition of the stock market in which stock prices are generally rising and most of the participants expect this to continue. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
March 2023
Categories |