Every point on a firm's LRATC curve corresponds to some point on one of its SRATC curves.

Question

Quizplus · Accepted Answer

The Long-Run Average Total Cost (LRATC) curve is derived from the Short-Run Average Total Cost (SRATC) curves, representing the lowest cost at which a firm can produce any given level of output when all inputs are variable. Each point on the LRATC curve corresponds to the lowest point on some SRATC curve, where the firm is operating at the optimal scale for that level of output.

Every Point on a Firm's LRATC Curve Corresponds to Some