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The Short-Run Average Total Cost Curve Is -Shaped Because

Question 343

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The short-run average total cost curve is The short-run average total cost curve is -shaped because at low output levels the spreading effect of falling average fixed costs dominates the diminishing returns effect, while at high output levels the reverse is true. -shaped because at low output levels the spreading effect of falling average fixed costs dominates the diminishing returns effect, while at high output levels the reverse is true.

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