Unformatted text preview: cost at an increasing rate. Notice that each point on the LRAC is a tangency with one ATC curve. Which point’s 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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- Spring '08
- Economics, Economics of production, LRAC, ATC curve, economics teacher Economies