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The Long-Run Average Cost Curve Is the Relationship Between the Highest

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The long-run average cost curve is the relationship between the highest attainable average total cost and output when both the plant size and labor are varied.


Definitions:

Zero Defects

A quality management concept aiming for the reduction of defects and errors in a product to zero through continuous improvement.

Continuous Improvement

An ongoing effort to improve products, services, or processes by making small, incremental improvements over time.

Deming

Refers to W. Edwards Deming, an American engineer, statistician, professor, author, lecturer, and management consultant known for his work in the field of quality management and for his influence on modern business practices.

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