Assuming decreasing returns to scale, illustrate the long run average cost curve under the following factor price conditions. Carefully explain your answer. For the cost curves which have the same slope (either negative or positive) explain why the slopes are different. Neither pecuniary economies or diseconomies, that is, all firms pay the same for inputs AC

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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.