If a firm is producing the level of output at which long-run average cost equals long-run marginal cost,then
A)long-run marginal cost is at its minimum point.
B)long-run average cost is at its minimum point.
C)long-run total cost is at its minimum point.
D)both a and b
E)all of the above

Question

Quizplus · Accepted Answer

When a firm is producing at a level where long-run average cost equals long-run marginal cost, it indicates that the firm is operating at the minimum point of its long-run average cost curve. This is a standard result in economic theory regarding the relationship between marginal cost and average cost.

If a Firm Is Producing the Level of Output at Which