The long-run average cost curve connects the lower part of the short-run cost curves because ________.

Question

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In the long run, firms have more flexibility to change their input combinations, such as investing in new technology or buying more or different types of machinery. This allows them to produce at lower costs and achieve economies of scale. As a result, the long-run average cost curve connects the lower part of the short-run cost curves. choices A, C, and D do not accurately explain the connection between short-run and long-run cost curves.

The Long-Run Average Cost Curve Connects the Lower Part of the Short-Run