The curve that illustrates the relationship between output and average total cost when the fixed cost has been chosen to minimize average total cost for each level of output is the _____ curve.
A)short-run average total cost
B)long-run average total cost
C)marginal cost
D)total product

Question

Quizplus · Accepted Answer

The fixed cost has been chosen to minimize average total cost at each level of output, which corresponds to the long-run average total cost curve.

The Curve That Illustrates the Relationship Between Output and Average