Answer to Question #100921 in Microeconomics for Usman Tariq

Question

With the aid of diagrams, show the short-run and long-run equilibrium position of a firm in a perfectly competitive market? When a firm doubles its inputs and finds that its output has more than doubled, this is known as?

Answer 1

When a firm doubles its inputs and finds that its output has more than doubled, this is known as Economies of scale

Perfect competition in short run

Perfect competition in Long run