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The Long-Run Average Cost Curve for the XYZ Co

question 3

Essay

The long-run average cost curve for the XYZ Co.is U-shaped.What does this imply about the firm's returns to scale?


Definitions:

Output

The total amount of goods or services produced by a company, sector, or economy over a specific period.

Price

The amount of money expected, required, or given in payment for something.

Marginal Revenue

The additional income that a firm receives from selling one more unit of a good or service.

Total Revenue

The total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.

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