The long-run average cost curve (LRAC)helps the producer understand which of the following?
A) What the level of production should be in order to be most efficient
B) How to deal with competitors' prices
C) How to deal with external factors
D) How to price under conditions of inelastic demand
E) How to price under conditions of elastic demand

Question

Quizplus · Accepted Answer

The long-run average cost curve (LRAC) helps the producer understand the level of production that will result in the most efficient use of resources in the long run. This is because the LRAC shows the average cost per unit of output at various levels of production, taking into account factors such as economies of scale and the optimal combination of inputs.

The Long-Run Average Cost Curve (LRAC)helps the Producer Understand Which