Single Commodity Long-Term Production Costs
When aggregated across an entire economy, or when considered over a longer run time frame – none of the production costs are fixed.
The impacts of economies of scale and changing / innovations in the deployment of technology result in a “Stretched-N” curve.
Costs are denominated in “Health Units per Unit Quantity” and represent the total Human costs of production. And the Costs depicted are the sum of all of the components of the Price of Production.
At some points along the curve (Q2) a reduction in total Costs can be realized through an increase in produced quantity.
At some points along the curve (Q3) any increases in production will increase the cost per unit quantity, as the production system runs into the constraints of nature and the capacity of the Earth.