At that quantity where the SRAC of production is equal to the LRAC of production, the LRMC of production __________________ the SRMC of production.
A) is greater than
B) equals
C) is less than

Question

Quizplus · Accepted Answer

At the point where SRAC equals LRAC, the firm is experiencing constant returns to scale. Therefore, the LRMC of production is equal to the SRMC of production.

At That Quantity Where the SRAC of Production Is Equal