Unformatted text preview: . Beyond this point between N2N3 we notice LAC rising upwards. The cost now increases and returns decreases. This is the phase of diseconomies of the scale . Under these long run conditions no further output can be advantageously produced beyond Q2. The economies of scale are at the disposal of a firm only in the long run when fixed factors become variable and replaceable....
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- Fall '10
- Economics, Economics of production, LAC mark variations