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Unformatted text preview: cost at an increasing rate. Notice that each point on the LRAC is a tangency with one ATC curve. Which points an ATC is the tangency with the LRAC? Liebowitz- thanks Boeing produced 10 jets in March and had long run cost of $100 million. In April, they produce 11 jets at $101 million. A) economies of scale B) diseconomies of scale C) constant returns scale D) a retard for an economics teacher Economies of scale LRAC average goes down, output increases...
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This note was uploaded on 04/18/2008 for the course ECO 2023 taught by Professor O'gorman during the Spring '08 term at South Florida Community College.
- Spring '08