Exhibit 6-17 Long-run average cost curve

-In Exhibit 6-17,short-run average total cost,short-run marginal cost,and long-run average cost are all equal at which level of output per week?

Question

Exhibit 6-17 Long-run average cost curve
 
-In Exhibit 6-17,short-run average total cost,short-run marginal cost,and long-run average cost are all equal at which level of output per week?

Quizplus · Accepted Answer

In the long run, the long-run average cost curve is tangent to the short-run average total cost curve at the minimum point, which is also where the short-run marginal cost equals the short-run average total cost. This occurs at Q₂ units.

Exhibit 6-17 Long-Run Average Cost Curve