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LAC curve In Modern Costs Theory.
Автор: LearnAboutEconomics
Загружено: 2024-11-28
Просмотров: 8
Описание: In this video I will explain long- Run Average Cost curve(LAC) in Modern Costs Theory. LAC curve can be derived from the short- run cost curves. Under the Modern Theory of costs, the falling portions of SAC curves are considered to obtain derive the LAC curve. A firm is assumed to operate till its Load Factor and not full capacity is achieved. Load Factor generally lies between 2/3 or 3/4 of the total capacity and corresponds to the falling portion of the short- run Average cost curve.
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