The Long-Run Average Total Cost Curve Owes Its U-Shaped Structure

question 98

True/False

The long-run average total cost curve owes its U-shaped structure to the economies and diseconomies of scale.

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Definitions:

Households

Economic units consisting of all individuals who occupy a home, which participate in economic decisions.

Loanable Funds

A term in economics referring to the market where savers supply funds for loans to borrowers, influenced by interest rates.

Induces

Induces means to lead or move someone to take action, often by persuasion or influence.

National Saving

The total amount of savings in a country, equal to the sum of private and public savings, representing the portion of national income not used for consumption or government spending.