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Unformatted text preview: hence, all costs are variable. The long-run average total cost curve ( LATC ) is found by varying the amount of all factors of production. However, because each SATC corresponds to a different level of the fixed factors of production, the LATC can be constructed by taking the lower envelope of all the SATCs , as is illustrated in Figure 1 . Figure 1 Short- and long-run average total cost curves...
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- Fall '10