As the economy moves upward, the amount of debt required to finance an investment increases.
This is generally a good thing because it reduces the risk that the investment will not be repaid. This is one of the reasons that long-run average total cost curves have such nice shapes. They’re almost a downward-sloping portion of a long-run average total cost curve because debt is relatively riskless. As the recession progresses, the amount of debt required to finance an investment increases.
This isn’t the case for stocks. Short-run total return curves have positive slopes, because while debt is risky, stocks are riskless. Short-run average total cost curves have positive slopes because they just look like the long-run average total cost curve but over shorter time periods.
This is why short-term average total cost curves look like this. They dont, when plotted on a long-run average total cost curve, actually have any sloping part to them. A long-run average total cost curve is a moving average of all of the information in the economy. In other words, there is only one short term average total cost curve.
A long-run average total cost curve looks like this because the short-run average total cost curve only has one short term average total cost curve. The short-run average total cost curve is that of a moving average of all of the information in the economy. The long-run average total cost curve is that of all of the information in the economy at a given time.
The term is a bit confusing because it doesn’t actually mean what it does. The term refers to the average of all of the information in the economy plus the information that’s been removed from the economy. In other words, the average of all of the information in the economy. Since there are so many moving averages in the economy, it’s often referred to as a moving average of moving averages.
The reason that the long-run average total cost curve is a long-run average of the information in the economy is because it means that the information in the economy is actually being removed from the economy. That means that the information is being replaced by a longer average total cost curve. In other words, the information that is being removed from the economy is being replaced by moving averages.
The reason that the long-run average total cost curve is a long-run average of the information in the economy is because it means that the information in the economy is actually being removed from the economy. That means that the information is being replaced by moving averages.
The economy has to account for the information in the economy. If you look at the data in the economy in this way, you’ll see that the information is being replaced by the moving averages of the information in the economy. The average of the data is called a “move average.” So it’s actually a moving average of the data, but it’s also a moving average of the moving averages of the information in the economy.
