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UPS currently is evaluating and testing the second generation of the DIAD.
Long-Run Average Total Cost Curve
A graphical representation that shows the lowest cost at which a firm can produce any given level of output in the long run, when all inputs are variable.
Output
Output refers to the amount of goods or services produced by a firm or economy within a certain period.
Physical Capital
Consists of tangible, man-made objects that a business uses to produce goods or services, such as buildings, machinery, and equipment.
Short Run
A period in economics where at least one factor of production is fixed, limiting the ability of the economy or firm to adjust to changes in demand or supply.
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