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

-The planning horizon refers to the short run, when the firm must plan how much of a variable input to apply to a fixed input.

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
 
-The planning horizon refers to the short run, when the firm must plan how much of a variable input to apply to a fixed input.

Quizplus · Accepted Answer

The planning horizon refers to the long run, when the firm can adjust all inputs, including the fixed input.

The Figure Given Below Shows Three Short Run Average Total