Every point on a U‐shaped long-run average cost curve represents
A) the minimum cost at which the associated output level can be produced when the scale of plant can be changed.
B) the minimum point of the associated short-run average cost curve.
C) the minimum cost at which the associated output level can be produced when the scale of plant cannot be changed.
D) both A and B.

Question

Quizplus · Accepted Answer

The U-shaped long-run average cost curve represents the minimum cost at which the associated output level can be produced when the scale of plant can be changed.

Every Point on a U‐shaped Long-Run Average Cost Curve Represents