Long-run average costs at any output level will:
A) always be less than or equal to short-run average total costs.
B) always be greater than or equal to short-run average total costs.
C) always be equal to short-run average total costs.
D) sometimes be less than and sometimes greater than short-run average total costs.

Question

Quizplus · Accepted Answer

In the long run, firms can adjust all inputs and achieve the most efficient production level, leading to long-run average costs being less than or equal to short-run average total costs, where some inputs are fixed.

Long-Run Average Costs at Any Output Level Will