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From course:

Economics A Level (DONEEEEEEE)

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Question:

In the Long Run, what can happen their Short Run Average Cost? (SRAC: This is just AC)

Author: eric_galvao



Answer:

-Since all Factors of Production are Variable, Firms can have the potential to boost Productivity. -So, SRAC can shift Downwards and Right. South East. -SRAC will however have an AC where it can’t go lower, which can be the most Productive Efficient Point.


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