If a firm is minimizing costs at its current output level, then the firm is operating at a point along the long- run average cost curve.

Question

Quizplus · Accepted Answer

When a firm is minimizing costs at its current output level, it is using the most efficient combination of labor, capital, and other inputs to produce its output. This efficient combination of inputs corresponds to a point on the long-run average cost curve, where the firm can achieve the lowest possible cost per unit of output. Therefore, the statement is true.

If a Firm Is Minimizing Costs at Its Current Output