Long run and short run total cost functions are:
A)unrelated to each other.
B)tangent at one point.
C)different names for the same thing.
D)tangent at minimum short run average cost.

Question

Quizplus · Accepted Answer

In the long run, firms can adjust all inputs, while in the short run, some inputs are fixed. The long run total cost curve is tangent to the short run total cost curve at the point where the firm is using the optimal level of fixed inputs for the given level of output.

Long Run and Short Run Total Cost Functions Are