At the long-run quantity of output, where the long-run average total cost curve is at its lowest point, it is tangent to the _____ of the corresponding short-run average total cost curve.
A) minimum
B) maximum
C) right of the minimum
D) left of the minimum

Question

Quizplus · Accepted Answer

In the long run, firms can adjust all inputs, and the long-run average total cost curve is tangent to the minimum point of the short-run average total cost curve, indicating the most efficient scale of production.

At the Long-Run Quantity of Output, Where the Long-Run Average