A curve showing the lowest cost at which a firm is able to produce a given level of output in the long run is
A)a long-run production function.
B)a long-run marginal cost curve.
C)a minimum efficient scale curve.
D)a long-run average total cost curve.

Question

Quizplus · Accepted Answer

A long-run average total cost curve shows the lowest cost at which a firm is able to produce a given level of output in the long run. It is a curve that depicts the minimum average total cost at which a firm can produce any given level of output when all inputs are variable.

A Curve Showing the Lowest Cost at Which a Firm