Figure 13-8
The figure below depicts average total cost functions for a firm that produces automobiles.

-Refer to Figure 13-8.Which curve represents the long-run average total cost?

Question

Figure 13-8
The figure below depicts average total cost functions for a firm that produces automobiles.
 
-Refer to Figure 13-8.Which curve represents the long-run average total cost?

Quizplus · Accepted Answer

The long-run average total cost curve (ATCD) typically represents the lowest possible cost at which a firm can produce any given level of output when all inputs are variable, and it is usually flatter and more U-shaped compared to short-run average total cost curves.

Figure 13-8 the Figure Below Depicts Average Total Cost Functions for a for a Firm