If an industry exhibits economies of scale, one larger firm may be able to produce goods at a lower long-run average cost than two smaller firms. True False > Show Transcribed Text The U-shaped average-total-cost curve reflects the U-shaped average-fixed-cost curve. True 2 False

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Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.