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Consider the diagram at the right of SRATC and LRAC curves. The SRATC curve is drawn for a given plant size. a. Given a plant

Consider the diagram at the right of SRATC and LRAC curves. The SRATC curve is drawn for a given plant size. a. Given a plant size associated with SRATC, the level of output that minimizes short-run average costs is Unit costs in the short run at this level of output are SRATC Cost per Unit ($) LRAC .. ....... ......... Q Q1 Q2 K Output

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