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The Slope of a Long-Run Average Total Cost Curve Exhibiting

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The slope of a long-run average total cost curve exhibiting decreasing returns to scale is:


Definitions:

Perfectly Competitive Firm

A company operating in a market where there are many sellers and buyers, the product is homogeneous, and there are no barriers to entry or exit.

Downward Sloping

Describes a line or curve on a graph that shows a decrease in value as it moves from left to right.

Average Total Cost Curve

A graph that shows a firm's per-unit cost (both fixed and variable) at various levels of output.

Upward-sloping

Describes a curve on a graph that moves higher as it goes from left to right, often used to illustrate the relationship between price and supplied quantity in supply curves.

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