Which of the following is correct?
A) A firm's long- run average cost curve is derived from a series of short- run average cost curves.
B) A firm's long- run total cost is the difference between its long- run fixed cost and long- run variable cost.
C) A firm's short- run average cost curve is derived from a series of long- run average cost curves.
D) Both answers A and C are correct.

Question

Quizplus · Accepted Answer

A firm's long-run average cost curve is indeed derived from a series of short-run average cost curves, representing the lowest cost at which a firm can produce any given level of output in the long run, after all inputs are variable.

Which of the Following Is Correct