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Unformatted text preview: • In the long run we would choose the plant that yielded the lowest average total cost for any desired level of output the red portion of the curves (LATC) represents these choices the smallest factory (ATC1) is best for output below “A”; the largest factory (ATC3) is best for output greater than “B”....
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This note was uploaded on 03/20/2008 for the course EC 201 taught by Professor Xasdf during the Fall '08 term at N.C. State.
- Fall '08