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Chapter 9 su1
1.
Chapter 9 Production
& Cost in the Long Run
2.
3.
4.
5.
6.
7.
8.
Expansion Path
(Figure 9.6) 9-
9.
10.
11.
12.
13.
Derivation of a
Long-Run Cost Schedule (Table 9.1) 9- 100 500 600 200 300 400 700 LMC $120 420 560 140 200 300 720 $1.20 0.84 0.93 0.70 0.67 0.75 1.03 $1.20 1.20 1.40 0.20 0.60 1.00 1.60 Least-cost combination of Output Labor (units) Capital (units) Total cost ( w = $5, r = $10) LAC LMC 10 40 52 12 20 30 60 7 22 30 8 10 15 42
14.
Long-Run Total, Average,
& Marginal Cost (Figure 9.9) 9-
15.
16.
Long-Run Average Cost
as the Planning Horizon (Figure 9.13) 9-
17.
Restructuring Short-Run Costs
(Figure 9.14) 9-
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