The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3

-In the long run, the producer can change the entire plant size to produce a certain level of the output.

Question

The figure given below shows three Short Run Average Total Cost (SRATC) curves and the Long Run Average Total Cost (LRATC) curve of a firm.Figure 8.3
 
-In the long run, the producer can change the entire plant size to produce a certain level of the output.

Quizplus · Accepted Answer

In the long run, all inputs are variable and the producer can change the size of the entire plant to produce any level of output. Therefore, the statement is true.

The Figure Given Below Shows Three Short Run Average Total