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

Question

Quizplus · Accepted Answer

The long-run average cost curve helps the producer understand how large a business should be in order to be most efficient. By identifying the point of minimum cost, the producer can determine the optimal scale of production.

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