Micro Computerized
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Micro-Economics Question #2?
10. As car manufacturers incorporate more sophisticated computer technology in their vehicles, auto-repair shops require more computerized testing equipment, which is quite expensive, in order to repair newer cars. How this is likely to affect the shape of these firms’ long-run average total cost curves? How is it likely to affect the number of auto-repair firms in any market?
It will shift the long-run average cost curve upward, because the firms will need such an equipment to stay on business. And huge investment is required in this business,only big players will be in the market. The number of firms will decline.
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Sanyo ECJ-M100S Micro
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