Average Cost Curve

Average Cost Curve—Long Run
The Average Cost Curve (ACC) in the long run represents the average cost per unit of output, taking into account the optimal production technology and scale. It is crucial for understanding economies of scale and business optimization.
Average Cost Curve—Short Run
A graphical depiction of the average cost per unit to produce a product for a given level of output based on current technology and scale employed by existing firms.

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