When the long- run marginal cost equals the long- run average cost, the long- run average cost is_______ .

Question

Quizplus · Accepted Answer

When the long-run marginal cost equals the long-run average cost, it means that the marginal cost is equal to the average cost at every level of output. In this case, the long-run average cost is at its minimum point, which represents the lowest possible unit cost of production. Thus, the best choice is A.

When the Long- Run Marginal Cost Equals the Long- Run