What does the long-run average cost curve show?
A) the interaction between average fixed cost and marginal cost
B) the lowest average cost to produce each output level in the long run
C) the distinction between long-run fixed and long-run variable costs
D) the lowest average marginal cost of producing each output level at any time.
E) Answers A, B, and C are correct.

Question

Quizplus · Accepted Answer

The long-run average cost curve shows the lowest average cost to produce each output level in the long run. This is because in the long run, all inputs are variable, and firms can adjust their inputs to minimize their costs.

What Does the Long-Run Average Cost Curve Show