d) Cost curves

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4 Terms

1
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  • a short-run cost curve


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2
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  • ATC and MC initially decrease before eventually increasing because of….

  • the initial decrease is due to…

  • the eventual increase is due to…


  • the law of diminishing marginal returns

  • specialisation

  • overcrowding


3
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  • a long-run cost curve


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4
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  • LRAC initially decreases before eventually increasing because of…


  • economies and diseconomies of scale