Question

What is the likely shape of the average Total cost(ATC) Curve in the (a) short-run, explain your answer

Answer 1

Answer:

The long-run average cost (LRAC) curve shows the firm's lowest cost per unit at each ... The costs it shows are therefore the lowest costs possible for each level of output. ... This critical point is explained in the next paragraph and expanded upon ... If it has 30 units of capital, for example, its average total cost curve is ATC30.

Explanation:

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