Each short-run average total cost curve is tangent at its lowest point to the long-run average cost curve.

Name: Each short-run average total cost curve is tangent at its lowest point to the long-run average cost curve.
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In the long run, firms can adjust all inputs, and the long-run average cost curve is an envelope of the short-run average cost curves, but not necessarily tangent at their lowest points.

Each Short-Run Average Total Cost Curve Is Tangent at Its