A ﬁrm that that has signiﬁcant cost ineﬃciencies in production will operate at the lowest point on its long-run average total cost curve.

Question

Quizplus · Accepted Answer

A firm that has significant cost inefficiencies in production will operate at a point above the lowest point on its long-run average total cost curve, as it will have higher average costs due to the inefficiencies.

A ﬁRm That That Has Signiﬁcant Cost Ineﬃciencies in Production