The long-run average total cost (LRATC)curve shows the
A)lowest average variable cost at which the firm can produce any given level of output.
B)lowest unit cost at which the firm can produce any given level of output.
C)highest average fixed cost at which the firm can produce any given level of output.
D)lowest marginal cost at which the firm can produce any given level of output.

Question

Quizplus · Accepted Answer

The LRATC curve shows the lowest unit cost at which the firm can produce any given level of output in the long run. This includes both variable and fixed costs, and represents the most efficient level of production for the firm.

The Long-Run Average Total Cost (LRATC)curve Shows the