When long run average costs reach their minimum, they:
A)are less than long run marginal cost.
B)also minimize the long run marginal cost.
C)are equal to long run marginal cost.
D)are greater than long run marginal cost.

Question

Quizplus · Accepted Answer

When long run average costs reach their minimum, they are equal to long run marginal cost. This is because marginal cost intersects with average cost at its minimum point, indicating that the additional cost of producing one more unit is equal to the average cost of producing all units. Therefore, long run marginal cost is also at its minimum at this point.

When Long Run Average Costs Reach Their Minimum, They