The long-run average total cost curve is always
A)flatter than the short-run average total cost curve, but not necessarily horizontal.
B)horizontal.
C)falling as output increases.
D)rising as output increases.

Question

Quizplus · Accepted Answer

The long-run average total cost curve is typically flatter than the short-run average total cost curve because firms can adjust all inputs in the long run, leading to economies of scale and more efficient production. However, it is not necessarily horizontal as it can still exhibit economies or diseconomies of scale.

The Long-Run Average Total Cost Curve Is Always