平狄克微观经济学第七章课件TheCostofProduction.pptVIP

精品课件资料 Slide * Long-Run Average Cost (LAC) Decreasing Returns to Scale If input is doubled, the increase in output is less than twice as large and average cost increases with output. Long-Run VersusShort-Run Cost Curves 精品课件资料 Slide * Long-Run Average Cost (LAC) In the long-run: Firms experience increasing and decreasing returns to scale and therefore long-run average cost is “U” shaped. Long-Run VersusShort-Run Cost Curves 精品课件资料 Slide * Long-Run Average Cost (LAC) Long-run marginal cost leads long-run average cost: If LMC LAC, LAC will fall If LMC LAC, LAC will rise Therefore, LMC = LAC