This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

This online resource has been set up for educational purposes.All rights are reserved by the various websites.

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Brief description: The long run average cost curve shows the least-cost method of production of any given level of output.

Detailed description: It is often drawn U-shaped (though in practice will vary) to show that initially there may be economies of scale which reduce the cost per unit. Subsequently there may be constant returns to scale where the cost per unit remains the same and eventually the cost per unit may begin to rise as diseconomies of scale set in.