2) A firm can’t be at the lowest point on its SRAC curve and also be on its long run average cost curve (i. minimizing LRAC for that output) if it…

  2) A firm can’t be at the lowest point on its SRAC curve and also be on its long run average cost curve (i.e. minimizing LRAC for that output) if it still has economies of scale available. Use a diagram to clarify your arguments.

4) If all factors of production are equal in quality, and there are constant returns to scale, what will the firm’s long run supply curve look like? In perfect competition what does the firm’s demand curve look like? Is there a problem here?