Introduction to the Scientific Method. The scientific method is the process by which scientists, collectively and over time, endeavor to construct an accurate (that is, reliable, consistent and non-arbitrary) representation of the world.
The long-run marginal cost curve is shaped by returns to scale, a long-run concept, rather than the law of diminishing marginal returns, which is a short-run concept. The long-run marginal cost curve tends to be flatter than its short-run counterpart due to increased input flexibility as to cost minimization.iven that LRAC is an average quantity, one must not confuse it with the long-run marginal cost curve, which is the cost of one more unit. The LRAC curve is created as an envelope of an infinite number of short-run average total cost curves, each based on a particular fixed level of capital usage.
10/14/20141 Chapter 8, Lecture slides Long Run Total Cost ï The long run total cost curve shows the total cost of a firmâs optimal choice combinations for labor and capital as the firmâs total output increases.ts marginal cost is then MC(Q) = 20Q. What is the minimum efficient scale (MES) for this firm? a) 0 b) 2 c) 4 d) Indeterminate Query #3 - Answer ïAnswer CïThe minimum efficient scale is the smallest quantity at which the longârun average cost curve attains its minimum point.