The least-cost way of producing a particular rate of output is represented by a point of tangency between a short-run average cost curve and the
A)total cost curve
B)short-run average total cost curve
C)average variable cost curve
D)long-run average cost curve
E)marginal cost curve

Question

Quizplus · Accepted Answer

The least-cost way of producing a particular rate of output in the long run is represented by the tangency between the short-run average cost curve and the long-run average cost curve, indicating the most efficient scale of production.

The Least-Cost Way of Producing a Particular Rate of Output