If a firm is producing the level of output at which long-run average cost equals long-run marginal cost, then
A) long-run marginal cost is at its minimum point.
B) long-run average cost is at its minimum point.
C) long-run total cost is at its minimum point.
D) both a and b
E) all of the above

Question

Quizplus · Accepted Answer

When long-run average cost equals long-run marginal cost, the long-run average cost is at its minimum point. This is because the marginal cost curve intersects the average cost curve at its lowest point.

If a Firm Is Producing the Level of Output at Which