A firm's long-run average cost curve
A) shows the lowest attainable average total cost of producing any level of output when the plant and labor are fixed.
B) is the sum of all of its short-run average cost curves.
C) tells the firm which plant size to use and which quantity of labor to use to minimize the cost of producing any level of output.
D) all of the above

Question

Quizplus · Accepted Answer

The long-run average cost curve indicates the lowest cost at which a firm can produce any given level of output when all inputs, including plant size and labor, are variable.

A Firm's Long-Run Average Cost Curve