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Short and Long Run Costs and Curves
Please discuss in detail and answer each of the following questions. 1. Discuss what are the differences between short and long run costs?
1. For the short run, discuss what the relationship is between cost theory and production theory and the concept of diminishing returns?
2. What is diminishing returns and how does it shape production and cost curves?
3. Discuss what the relationship is between short run cost curves and long run cost curves?
4. Finally discuss the concept of economics of scale and how long run costs curves shape the economic structure of industries?
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