What does the long-run average cost curve show?
A)The lowest average cost of producing every level of output in the long run.
B)Where the most profitable level of output occurs.
C)The average cost of producing where diminishing returns are not present.
D)The plant size or scale that the firm should build.

Question

Quizplus · Accepted Answer

The long-run average cost curve shows the lowest average cost of producing every level of output in the long run, as it takes into account all potential changes in plant size and technology.

What Does the Long-Run Average Cost Curve Show