Draw the Iong Run cost Curve Consider the longrun productio

Draw the Iong - Run cost Curve. Consider the long-run production of shirts. The cost of the indivisible inputs used in the production of shirts is $-100 per day. To produce 1 shirt per day, the firm must also spend a total of S5 on other inputs-labor, materials, and other capital. For each additional shirt, the firm incurs the same additional cost of S5. The long-run average cost for: 100 shirts is $

Solution

Long run Total cost = $400 (indivisible) + $5 x 100 = $(400 + 500) = $900

So

Long run average cost = Long run total cost / number of shirts

= $900 / 100 = $9

NOTE: I don\'t access your graphical tool, so the graph cannot be drawn.