LONG-RUN AVERAGE TOTAL COST - LRATC
A business metric used to represent the average cost per unit of output in the long run, where every input is considered as variable.
These costs are relatively always smaller than short-term unit costs. Firms, in the long-term frame, have the flexibility to modify huge factors of their operations such as factories, in order to attain optimal efficiency. Company management and investors aims to reach lower LRATC.
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