The long-run average cost curve is an envelope curve,with each point associated with a short-run average cost curve
A)tangent at that point.
B)crossing that point from above.
C)lying below it.
D)intersecting that point.
E)at its minimum point.

Question

Quizplus · Accepted Answer

The long-run average cost curve is tangent to each short-run average cost curve at the point where the firm is operating at the optimal scale for that level of output.

The Long-Run Average Cost Curve Is an Envelope Curve,with Each