In the long-run equilibrium, which of the following is at its minimum point?
A)Price
B)Average variable cost
C)Average fixed cost
D)Average total cost
E)Marginal cost

Question

Quizplus · Accepted Answer

In the long-run equilibrium, a firm produces at the minimum point of its long-run average total cost curve (LRATC). At this point, the firm is producing at the lowest possible cost per unit, which is the minimum point of the LRATC. Therefore, average total cost (ATC) is at its minimum point in the long-run equilibrium.

In the Long-Run Equilibrium, Which of the Following Is at Its