The long-run average cost curve is equal to
A) the minimum short-run average total cost for each output level.
B) the minimum short-run average total cost for each given plant or factory size.
C) the downward-sloping portion of all short-run average total cost curves.
D) the summation of all short-run average cost curves for each output level.
E) the difference between the highest and the lowest short-run average cost for each output level.

Question

Quizplus · Accepted Answer

The long-run average cost curve is equal to the minimum short-run average total cost for each output level. This is because in the long run, firms can adjust their plant size to achieve the most efficient scale of production for each output level.

The Long-Run Average Cost Curve Is Equal to