Exhibit 6-15 Long-run average cost

-In Exhibit 6-15,short-run average total cost,short-run marginal cost,and long-run average cost are all equal at which level of output per week?

Question

Exhibit 6-15 Long-run average cost
 
-In Exhibit 6-15,short-run average total cost,short-run marginal cost,and long-run average cost are all equal at which level of output per week?

Quizplus · Accepted Answer

At 1,000 units of output per week, the short-run average total cost, short-run marginal cost, and long-run average cost are all equal. This indicates that the firm is operating at its efficient scale in the long run, where it is achieving the lowest possible average cost given its production technology and inputs.

Exhibit 6-15 Long-Run Average Cost