The long-run average total cost curve is constructed from the
A)Minimum points of the short-run marginal cost curves.
B)Minimum points of the short-run average variable cost curves.
C)Lowest average total cost for producing each level of output.
D)Minimum points of the long-run marginal cost curves.

Question

Quizplus · Accepted Answer

The long-run average total cost curve represents the lowest average total cost for producing each level of output in the long run, when firms have the flexibility to adjust all inputs, including capital. Therefore, the correct option is C - lowest average total cost for producing each level of output.

The Long-Run Average Total Cost Curve Is Constructed from the