Please explain statement 2 and why it cannot decrease
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I cant guarantee that I also understand this correctly but prima facia what I think is :
I focus on “short term”, (costs involved for) “capital raising”, And “Marginal Cost”.
As you raise more and more capital your cost incurred for doing so increases. And if its short term scenario ,the marginal cost , ie, cost of raising 1 unit of capital increases.. but as we go long term the the Marginal cost smoothens..
If I Think of some Eco concepts like How Fixed cost appears higher initially when production is increased, but as time goes by the Fixed cost gets distributed evenly over bigger and larger production units, hence fixed cost appears low in long term large scale production.