The long-run average cost function reaches a minimum where:
A) dLAC/dQ = 0.
B) LTC = LAC.
C) dTFC/dQ = 0.
D) dLMC/dQ = 0.
E) dLTC/dQ = 0.

Name: The long-run average cost function reaches a minimum where: A) dLAC/dQ = 0. B) LTC = LAC. C) dTFC/dQ = 0. D) dLMC/dQ = 0. E) dLTC/dQ = 0.
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Question

Quizplus · Accepted Answer

The long-run average cost (LAC) function reaches a minimum where its first derivative with respect to quantity (Q), dLAC/dQ, is equal to zero. This indicates the point of minimum average cost.

The Long-Run Average Cost Function Reaches a Minimum Where