Explain Why the Long-Run Average Cost Curve Is Usually U-Shaped

question 100

Essay

Explain why the long-run average cost curve is usually U-shaped although all inputs are variable in the long run?

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Definitions:

Ego

In psychoanalytic theory, the part of the personality that mediates between the desires of the id and the constraints of the super-ego, operating on the reality principle.

Libido

A term used to describe sexual drive or desire, often discussed in the context of psychological and psychoanalytic theories.

Play Stage

The second stage in Mead’s theory of the development of self wherein children pretend to play the role of the particular or significant other.

Game Stage

The third stage in Mead’s theory of the development of self wherein children play organized games and take on the perspective of the generalized other.