The long-run average total cost curve is:
A)flatter than the short-run average total cost curve
B)not U-shaped
C)always decreasing as output increases
D)always increasing as output increases

Question

Quizplus · Accepted Answer

The long-run average total cost curve is flatter than the short-run average total cost curve because it represents the lowest possible cost at which a firm can produce any given level of output when all inputs are variable, allowing for greater flexibility and optimization in production processes.

The Long-Run Average Total Cost Curve Is