The Student Room Group

when does the Long Run Average Cost curve shift downwards/ can it ?

when does the Long Run Average Cost curve shift downwards/ can it?

and could this cause an increase in globalization ? :smile:

thanks


also - could removal of tarrifs and quotas be classed as deregulation ?
(edited 11 years ago)
Original post by jojo1995
when does the Long Run Average Cost curve shift downwards/ can it?

and could this cause an increase in globalization ? :smile:

thanks


also - could removal of tarrifs and quotas be classed as deregulation ?


It will shift down if the firms production function changes so that it can produce more from the same level of inputs or if its factor prices fall.

I would think more about economies of scale rather than decreases in costs causing globalisation.

Yes they are forms of deregulation.
Reply 2
Original post by Sternumator
It will shift down if the firms production function changes so that it can produce more from the same level of inputs or if its factor prices fall. - could this be improved technology and stuff

I would think more about economies of scale rather than decreases in costs causing globalisation.why would it ? please

Yes they are forms of deregulation.


thank you so much :smile:
Reply 3
will the LRAC shift down if the firms by improved technology and stuff ?

why would ECONOMIES OF SCALE CAUSE GLOBALIZATION ?

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