The long-run average total cost (LRATC) curve shows the
A)lowest average variable cost at which the firm can produce any given level of output.
B)lowest unit cost at which the firm can produce any given level of output.
C)highest average fixed cost at which the firm can produce any given level of output.
D)lowest marginal cost at which the firm can produce any given level of output.
E)none of the above

Question

Quizplus · Accepted Answer

The LRATC curve represents the lowest unit cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

The Long-Run Average Total Cost (LRATC) Curve Shows the