The portion of the short-run average cost curve that becomes part of the long-run average cost curve is the
A) portion of the short-run average cost curve with the highest unit cost.
B) minimum short-run average cost curve.
C) the downward-sloping portion of the short-run average cost curve.
D) portion of the short-run cost curve,be it upward-sloping or downward-sloping,that gives the lowest production cost for that specific level of output.
E) upward-sloping portion of the short-run average cost curve.

Question

Quizplus · Accepted Answer

In the long run, firms can adjust all inputs and choose the most cost-efficient production level, so the long-run average cost curve is made up of the lowest points of the short-run average cost curves for each level of output.

The Portion of the Short-Run Average Cost Curve That Becomes