The long-run average cost curve
A)is a composite of short-run AC curves.
B)shows the lowest possible short-run AC corresponding to each output level.
C)depends on the firm's planning horizon.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The long-run average cost curve is derived from the short-run average cost curves, represents the lowest cost for each output level, and is influenced by the firm's planning horizon.

The Long-Run Average Cost Curve