Referring again to Figure 2 and assuming that the firm is currently producing at point a using

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Referring again to Figure 2 and assuming that the firm is currently producing at point a using K1 capital and L1 labour, what will be the effect on 

(i) Short-run and 

(ii) Long-run average costs of reducing production to 100 units?

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Economics

ISBN: 978-1292187853

10th edition

Authors: John Sloman, Jon Guest, Dean Garratt

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