The long-run average cost curve
A) is an upside down U-shape.
B) is constructed using the short-run marginal cost curves.
C) shows economies and diseconomies of scale.
D) Both answers A and B are correct.
E) Both answers A and C are correct.

Question

Quizplus · Accepted Answer

The long-run average cost curve shows economies and diseconomies of scale, reflecting how costs change with output levels in the long run.

The Long-Run Average Cost Curve