Explain How Assumptions Held by Either the Speaker or the Listener

question 3

Essay

Explain how assumptions held by either the speaker or the listener can cause breakdowns in communication.

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Definitions:

Long-Run Average Cost

The per-unit cost of production in the long term, where all inputs are variable.

Total Output

The total value of goods and services produced by an economy over a specific period of time.

Total-Cost Curve

A graphical representation showing the total cost of producing varying quantities of output.

Economic Profit

The surplus gained from undertaking an activity after accounting for both explicit and implicit costs, differing from accounting profit.