The long-run average-total- cost curve represents:

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The long-run average-total-cost curve represents the lowest cost of producing any level of output when all the factors are variable. This is because in the long run, firms have the flexibility to adjust all inputs, including capital, labor, and technology, in order to achieve the most efficient combination of resources for producing a given level of output. As a result, the long-run average-total-cost curve is the envelope of all the short-run average-total-cost curves, which represent the lowest cost of producing a specific level of output with a fixed amount of capital and technology.

The Long-Run Average-Total- Cost Curve Represents