Examlex
The two-factor theory states that
Long-run Average Total Cost
The average cost per unit of output over the long term, where all inputs are considered variable, allowing firms to adjust all factors of production.
Plant Sizes
The physical capacity or scale of a manufacturing facility, which can influence production volume, efficiency, and cost.
Per-unit Cost
The cost associated with producing or acquiring one unit of a product.
Factory Size
The physical dimensions or capacity of a manufacturing facility, which may influence its output, efficiency, and employment levels.
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