What do the long run marginal cost and the average cost curves look like?

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Muskan Anand

2 years ago

Both MC and AC curves, in the long run, are U-shaped cost curves. This U-shape is a little less flat than the U- shape of the short-run curve MC curve. MC and AC curves i.e., long run MC and AC curves are a little flatter in shape. This behaviour is governed by the law of variable proportions.

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