Asked by Amanda Sammons on Jul 07, 2024
Verified
At quantities greater than the long-run minimum cost per unit of output,the long-run average total cost curve is _____ of the corresponding short-run average total cost curve.
A) tangent to the minimum
B) tangent to the maximum
C) to the right of the minimum
D) to the left of the minimum
Long-Run Minimum Cost
The lowest cost at which a firm can produce any given level of output in the long run when all inputs are variable.
Average Total Cost Curve
A graphical representation of the total cost (fixed plus variable) per unit of output produced, plotted against different levels of output.
Short-Run
A period in which at least one factor of production is fixed, and firms can only partially adjust their output levels.
- Recognize the relationship between short-run and long-run average total costs.
Verified Answer
Learning Objectives
- Recognize the relationship between short-run and long-run average total costs.
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