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Cost function
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` Cost Analysis
and Estimation
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Short Run Cost
Graphs AFC Q Q 1. 2. AVC 3. Q AFC AVC ATC MC MC intersects lowest point of AVC and lowest point of ATC. When MC < AVC, AVC declines When MC > AVC, AVC rises
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Long Run Cost
Function (LAC) Envelope of SAC curves
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Long-run Average Costs
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Notas do Editor
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