The long- run marginal cost curve intersects the minimum point on the long- run average cost curve.

Question

Quizplus · Accepted Answer

This statement is true and is a fundamental concept in microeconomics. The long-run average cost (LRAC) curve represents the lowest average cost of producing a particular output level over the long run, while the long-run marginal cost (LRMC) curve represents the additional cost incurred by producing one more unit of output in the long run. The LRMC curve intersects the LRAC curve at the point where the LRAC curve is at its minimum, indicating that the firm is producing at the most efficient scale of production.

The Long- Run Marginal Cost Curve Intersects the Minimum Point