The long-run marginal cost curve intersects the long-run average cost curve at the minimum point of the latter. When long-run marginal costs are below long-run average costs, long-run average costs are falling (as to additional units of output).iven that LRAC is an average quantity, one must not confuse it with the long-run marginal cost curve, which is the cost of one more unit. The LRAC curve is created as an envelope of an infinite number of short-run average total cost curves, each based on a particular fixed level of capital usage.
Globalization is the increasing interaction of people, states, or countries through the growth of the international flow of money, ideas, and culture. Globalization is primarily an economic process of integration that has social and cultural aspects. It involves goods and services, and the economic resources of capital, technology, and data. The steam locomotive, steamship, jet engine, and container ships are some of the advances in the means of transport while the rise of the telegraph and its
1. Globalization in the History of Ideas. The term globalization has only become commonplace in the last two decades, and academic commentators who employed the term as late as the 1970s accurately recognized the novelty of doing so (Modelski 1972).