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The Short-Run Average Total Cost Curve Is -Shaped Because

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The short-run average total cost curve is The short-run average total cost curve is   -shaped because at low output levels the spreading effect of falling average fixed costs dominates the diminishing returns effect, while at high output levels the reverse is true. -shaped because at low output levels the spreading effect of falling average fixed costs dominates the diminishing returns effect, while at high output levels the reverse is true.

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Definitions:

Midclavicular Line

An imaginary vertical line that runs through the midpoint of the clavicle in a person's anatomical position.

Nasal Flaring

The widening of the nostrils during breathing, often seen as a sign of respiratory distress or increased effort to breathe.

Sternal

Pertaining to the sternum or breastbone, a long flat bone located in the central part of the chest.

Intercostal Retractions

The inward movement of the spaces between the ribs during inhalation, indicating respiratory distress or difficulty breathing.

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