Explain Why the Long-Run Total Cost Curve,not the Short-Run Total

question 2

Essay

Explain why the long-run total cost curve,not the short-run total cost curve,shows the lowest cost of producing any level of output.Is there an exception?

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Definitions:

High-Risk Drivers

Individuals identified by insurance companies as more likely to be involved in accidents or commit traffic violations, often resulting in higher insurance premiums.

Low-Risk Drivers

Individuals who are considered to pose a lower than average risk of being involved in car accidents or filing insurance claims, often resulting in lower insurance premiums.

Adverse Selection

A scenario where one party in a transaction has more or better information than the other, often leading to a poor market outcome.

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, often including preventive care and treatments.