Unformatted text preview: run Average Cost Curve will be a horizontal line parallel to OX axis. If some of the fixed factors have an unlimited capacity to produce then the long run Average Cost Curve will continuously fall downward. If some of the factors are variable while a few other factors continue to be fixed even in the long run then LAC will be ’U’ shaped but flatter than SAC. Let us present a graph of the LAC....
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This note was uploaded on 11/26/2011 for the course ECONOMIC ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10