Bluetick1010

5) Both pages are referring to different points. Highlight the "short run variables" versus "shift in the short run" phrases. As I alluded to labor in my answer for question 4 above, you can hire and fire consultants as per your production needs "on a short run".

Imagine the "tele-conferencing" technology allowing executives to conduct interactive business meetings. Paying for a $150 a month high-speed broadband connection will cut down on air travel costs of lets say $1,500 a month. Thus radical technologies help shift the cost curves down.

Hope this helps.

ramdabom

correction: i meant the SAS slopes down and to the left in the above comment....

JPSem

some other guy:

schweser must be wrong then....the supply curve never slopes down and to the right. The supply curve always slopes down and to the the left; in the case of the AS-AD model the LAS is vertical and the SAS slopes down and to the right. In a decreasing cost industry, the average total costs may slope down and to the right....

spartanag07

@yohji
3. yes eco cost are higher(as both options give it) but then for small firms or large ones, and why?
7. your right, thanks.

@jay
6. the answer was true.
1,2. yes...my questions were incorrect. thanks.