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Bart is constantly told by one of his teachers that he is slow-witted and that he will never amount to anything. When he hears this, he does not feel like putting any effort into his schoolwork, feeling that the teacher will fail him anyway. Consequently, he begins to miss school and stops doing any schoolwork. What process is occurring in Bart?
LRAC Curve
The Long-Run Average Cost curve, showing the lowest possible cost of producing different levels of output when all inputs are variable.
Increasing-Cost Industry
An industry where production costs increase as output grows, often due to resource limitations or regulatory constraints.
Decreasing-Cost Industry
An industry in which average costs of production decrease as the industry grows larger, often due to economies of scale.
Long-Run Equilibrium
A state in which all factors of production and markets in an economy are in balance, and all firms in the market are earning normal profits with no inclination to enter or exit the market.
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