If the firm is producing in the long run, then the firm's average total cost curve
A) equals the average variable cost curve.
B) is less than the average variable cost curve.
C) exceeds the average variable cost curve.
D) equals zero.

Question

Quizplus · Accepted Answer

In the long run, the firm can adjust all of its inputs, including its capital stock. This means that the firm can produce at the minimum point of its average total cost curve.

If the Firm Is Producing in the Long Run, Then