What property does the long-run average-total-cost curve have
A)It is flatter than the short-run average-total-cost curve, but not necessarily horizontal.
B)It is horizontal.
C)It is always falling as output increases.
D)It is always 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 it reflects the ability of firms to adjust all inputs and achieve economies of scale, but it is not necessarily horizontal as it can have sections that are rising or falling depending on the scale of production.

What Property Does the Long-Run Average-Total-Cost Curve Have