Asked by Henry Gardner on May 10, 2024
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If output increases,a firm will move along its short-run average total cost curve in the short run until it has time to adjust its fixed cost.
Short-Run Average Total Cost Curve
A graphical representation that shows the average total cost of producing different levels of output in the short run, when at least one input is fixed.
Fixed Cost
Costs that do not vary with the level of output or production, such as rent, salaries, and insurance premiums.
Output
The quantity of products or services generated by an enterprise, sector, or economic system.
- Compare the variability of inputs in the short run versus the long run.
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Learning Objectives
- Compare the variability of inputs in the short run versus the long run.
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