The long-run average cost curve is the relationship between the lowest attainable average total cost and output, when plant size is ________ and labour is ________. The long-run average cost curve is made up of the segments of individual average ________ cost curves with the lowest average ________ cost for a given output.
A)varied; varied; variable; variable
B)varied; varied; total; total
C)varied; held constant; variable; variable
D)held constant; varied; total; total
E)held constant; varied; variable; variable

Question

Quizplus · Accepted Answer

In the long run, both plant size and labor are varied to find the lowest average total cost. The long-run average cost curve is composed of segments of individual average total cost curves that provide the lowest average total cost for each output level.

The Long-Run Average Cost Curve Is the Relationship Between the Lowest