The least-cost way of producing each particular rate of output is represented by the tangency points between the short-run average cost curves and the _____
A)total cost curve.
B)short-run average total cost curve.
C)average variable cost curve.
D)long-run average cost curve.
E)marginal cost curve.

Question

Quizplus · Accepted Answer

The least-cost way of producing each particular rate of output is represented by the tangency points between the short-run average cost curves and the long-run average cost curve. This is because the long-run average cost curve reflects the lowest possible cost at which a firm can produce any given level of output when all inputs are variable, incorporating the most efficient production technology.

The Least-Cost Way of Producing Each Particular Rate of Output