Plant Size and Long-Run Equilibrium
{"Image DocumentName": "Plant Size and Long-Run Equilibrium", "Image ImageDescription": "Short-run profit. maximizing point. 40. MC0. LRAC. SRAC0. MC1. SRAC1. Price (dollars per sweater) 25. MR0. MR m. Long-run. competitive. equilibrium. Instructor Notes: 1) In long-run equilibrium, a firm operates with the plant size that minimizes its average cost. 2) Here, Swanky operates the plant with short-run MC1 and short-run average cost SRAC1. 3) Swanky is also on its long-run average cost curve LRAC and produces at point m. 4) Its output is 8 sweaters a day, and its average total cost equals the price of a sweater--  Quantity (sweaters per day) \u0e17\u0e35\u0e48\u0e21\u0e32: Michael Parkin \u0e41\u0e25\u0e30\u0e27\u0e31\u0e19\u0e23\u0e31\u0e01\u0e29\u0e4c \u0e21\u0e34\u0e48\u0e07\u0e21\u0e13\u0e35\u0e19\u0e32\u0e04\u0e34\u0e19. 84.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}