Long-run average cost and short-run average cost curves have their U-shapes for the same reasons.
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Q128: Capital expansion can be shown as a
Q129: The long-run average total cost curve is
Q130: Explain what happens to the average total
Q131: The price of labor relative to capital
Q132: In the long run, a firm can
Q134: Capital expansion causes the average total cost
Q135: Economies of scale are the same as
A)decreasing
Q136: The firm expands its capital up to
Q137: Long-run average total cost is derived from
Q138: Economies of scale
A)account for the downward-sloping portion
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