Question

F4: Production and Cost Analysis 6 6 unread replies. 6 6 replies. When economist Jacob Viner first developed the envelop relationship, he told his draftsman to make sure that all the marginal cost curves went through both: 1. The minimum point of the short-run average cost curve and, 2. The point where the short-run average total cost curve was tangent to the long-run average total cost curve. The draftsman told him it couldn't be done but Viner told him to do it anyhow. Why was the draft man right? Hint: Make sure you examine the envelop relationship (chapter 12) in your text and explain using the graph and the information provided. name of the textbook "Microeconomics" David Colander ECO2023

Answer 1