Long description

This diagram has ‘Cost’ on the vertical axis and ‘Quantity’ on the horizontal axis.

It shows two very shallow U shaped curves, one just above the other. The upper curve is labelled ‘LRAC1’. The lower curve is labelled ‘LRAC2’. The lowest sections of both curves are actually quite flat for a long section before rising again. The upward rising section of both curves is very short.

Three points are marked on LRAC1. Point A is marked about half way along the downward sloping section of the curve. Point B is marked at the lowest point of the curve. Point C is marked on the upward rising section of the curve.

Three points are also marked on LRAC2. Point D is marked about half way along the downward sloping section of the curve. Point D lies directly below point A on LRAC1. Back on LRAC2, Point E is marked at the start of the flat lowest part of the curve. Point F is marked on the upward rising section of the curve.