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  2. Long-run cost curve - Wikipedia

    en.wikipedia.org/wiki/Long-run_cost_curve

    Long-run average cost (LRAC) is the cost function that represents the average cost per unit of producing some good. Long-run marginal cost (LRMC) is the cost function that represents the cost of producing one more unit of some good. The idealized "long run" for a firm refers to the absence of time-based restrictions on what inputs (such as ...

  3. Marginal cost - Wikipedia

    en.wikipedia.org/wiki/Marginal_cost

    The marginal cost can be either short-run or long-run marginal cost, depending on what costs vary with output, since in the long run even building size is chosen to fit the desired output. If the cost function C {\displaystyle C} is continuous and differentiable , the marginal cost M C {\displaystyle MC} is the first derivative of the cost ...

  4. Cost curve - Wikipedia

    en.wikipedia.org/wiki/Cost_curve

    The long-run marginal cost curve is shaped by returns to scale, a long-run concept, rather than the law of diminishing marginal returns, which is a short-run concept. The long-run marginal cost curve tends to be flatter than its short-run counterpart due to increased input flexibility. The long-run marginal cost curve intersects the long-run ...

  5. Economies of scale - Wikipedia

    en.wikipedia.org/wiki/Economies_of_scale

    Overall costs of capital projects are known to be subject to economies of scale. A crude estimate is that if the capital cost for a given sized piece of equipment is known, changing the size will change the capital cost by the 0.6 power of the capacity ratio (the point six to the power rule). [16] [d]

  6. Long-run marginal cost - Wikipedia

    en.wikipedia.org/?title=Long-run_marginal_cost&...

    Long-run marginal cost. Add languages. Add links. Article; Talk; ... Download QR code; Print/export Download as PDF; Printable version; In other projects Appearance.

  7. Returns to scale - Wikipedia

    en.wikipedia.org/wiki/Returns_to_scale

    In the long run, all factors of production are variable and subject to change in response to a given increase in production scale. In other words, returns to scale analysis is a long-term theory because a company can only change the scale of production in the long run by changing factors of production, such as building new facilities, investing ...

  8. US manufacturers predict growth in 2025 after prolonged slump

    www.aol.com/news/us-manufacturers-predict-growth...

    WASHINGTON (Reuters) - U.S. manufacturers are optimistic that the sector will emerge from a prolonged recession next year, though capital expenditure growth was likely to fall short of 2024's pace.

  9. Long run and short run - Wikipedia

    en.wikipedia.org/wiki/Long_run_and_short_run

    The long-run is associated with the long-run average cost (LRAC) curve in microeconomic models along which a firm would minimize its average cost (cost per unit) for each respective long-run quantity of output. Long-run marginal cost (LRMC) is the added cost of providing an additional unit of service or product from changing capacity level to ...

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