The firm's short-run cost curves shows how ________ with the quantity produced when at least one input is fixed.

Question

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The firm's short-run cost curves show how production costs vary with the quantity produced when at least one input is fixed. This is because in the short run, firms cannot change the level of fixed inputs, such as capital equipment or factory size, so any changes in output will be accompanied by changes in variable inputs, such as labor or raw materials, which will affect production costs. The shape of the short-run cost curves will depend on the specific technology and production processes used by the firm.

The Firm's Short-Run Cost Curves Shows How ________ with the Quantity