Unformatted text preview: ATC= AF C+ AVC Long run average cost curve: A curve showing the lowest cost at which the ﬁrm is able to
produce a given quantity of output in the long run, when no inputs are ﬁxed. Economies of scale: Exist when a ﬁrm’s long run average costs fall as it increases output. ...
View Full Document
- Spring '11