A firm's long-run average cost curve is also called its
A)profit curve
B)explicit cost curve
C)opportunity cost curve
D)production curve
E)planning curve

Question

Quizplus · Accepted Answer

The long-run average cost curve is referred to as the planning curve because it shows the lowest possible cost at which a firm can produce any given level of output when all inputs are variable, helping firms plan their production and cost strategies.

A Firm's Long-Run Average Cost Curve Is Also Called Its