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Graph the inequality.
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Average Total Cost
The total cost of production (fixed and variable costs combined) divided by the number of units produced.
Minimum Efficient Scale
The smallest quantity of output at which long-run average cost reaches its lowest level, allowing a firm to fully exploit economies of scale.
Economies of Scale
The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.
Diseconomies of Scale
Increases in cost per unit when output is expanded, often due to inefficiencies arising from becoming too large.
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