The long-run average cost curve is tangent to an infinite number of:
A) total cost curves.
B) marginal cost curves.
C) average variable cost curves.
D) average total cost curves.

Question

Quizplus · Accepted Answer

The long-run average cost curve represents the lowest possible average cost for producing each level of output in the long run. This means that it must be tangent to the average total cost curve at every point, as the average total cost curve represents the cost of producing each unit of output in the short run. Therefore, the correct answer is D, as it is the only choice that includes the average total cost curve.

The Long-Run Average Cost Curve Is Tangent to an Infinite