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Technology has a great impact on short-run curves by when technology advances then production of units will increase.
When technology advances so does the production of units increase which causes the average variable cost, which is the costs that vary with the quantity produced, to decrease. Also as the production increases, the fixed cost is spread over more units, causing the average fixed cost to also decrease. The decreasing average variable cost is reflected by advancement on technology such as machinery and computer technology. With the advancement of technology today the decreasing variable cost is also reflected by the labor by now machinery is replacing workers and or jobs...
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