Chapter 9 Flashcards
1
Q
shutdown point
A
Lowest point on AVC curve. Revenue insufficient when falls below the point.
2
Q
short-run industry supply curve
A
The sum of the marginal cost curves of all the firms in an industry.
3
Q
increasing returns to scale/economies of scale
A
Increase in scale decrease in costs per unit
4
Q
long-run average cost curve
A
The “envelope” of a series of short-ruin cost curves
5
Q
minimum efficient scale (MES)
A
The smallest size at which long-run average cost is at its minimum.
