12. Use the concepts of economies and diseconomies of scale to explain the?

Question

shape of a firm’s long-run ATC curve. What is the concept of minimum efficient scale? What bearing can the shape of the long-run ATC curve have on the structure of an industry?

Answer 1

The long-run ATC curve is U-shaped. At first long-run ATC falls as the firm expands and realizes economies of scale from labor and managerial specialization and the use of more
efficient capital. The long-run ATC curve later turns upward when the enlarged firm experiences diseconomies of scale usually resulting from managerial inefficiencies.

The MES (minimum efficient scale) is the smallest level of output needed to attain all economies of scale and minimum long-run ATC.

If long-run ATC drops quickly to its minimum cost which then extends over a long range of output the industry will likely be composed of both large and small firms. If long-run ATC descends slowly to its minimum cost over a long range of output the industry will likely be composed of a few large firms. If long-run ATC curve drops quickly to its minimum point and then rises abruptly the industry will likely be composed of many small firms.

Answer 2

There are just too many scriptures at the end of Christs ministry, when he pleads with the Father. His pleading with the father is what really makes no sense. If He is the Father, then why plead with him? There is just no logic to it. Also we know that God, is the father of Jesus, so if you believe in the trinity, you believe that Jesus is his own father- he Fathered himself. I get what you are saying about the Miracles, but this is where faith comes in really. He is a God and he can make these things happen. I think much of the Christian world has been taught that God is confusing and incomprehensible and that we should not try to understand him- just accept Him as our Master and do His will. That makes it hard to grasp the alternate idea that maybe there is some logic to God and his existence. It is the same way that I believe in the creation over Evolution and Big Bang, because the Creation is a whole lot more logical to me that the other two theories. Miracles are just different to me. The miracles were performed to help people believe in God and in the Deity of Jesus. They were performed to confirm that He is the Son of God. There was a purpose for them. I guess the only way to know for sure, is to ask the Lord. If you ask in Faith and open your mind to the answers the Lord wants you to have, He will testify to you if the Trinity is correct or not. He will show you the way.