Asked by Brian Williams on May 07, 2024
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A firm always operates at some point on its long-run average total cost curve in both the long run and the short run.
Long-Run Average Total Cost Curve
A graphical representation showing how the average total cost of production varies with output level in the long run, when all inputs are variable.
Short Run
A period in economics during which at least one factor of production is fixed, limiting the ability to fully adjust to new market conditions.
Long Run
The time period in economics during which all inputs or factors of production can be adjusted or changed, contrary to the short run where some inputs are fixed.
- Perceive the association between a corporation's production quantity and its average total cost in the context of both short run and long run scenarios.
Verified Answer
Learning Objectives
- Perceive the association between a corporation's production quantity and its average total cost in the context of both short run and long run scenarios.
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