The long-run average cost curve is tangent to the minimum point of every short-run average total cost curve.

Name: The long-run average cost curve is tangent to the minimum point of every short-run average total cost curve.
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Question

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The long-run average cost curve is an envelope of the short-run average total cost curves and is tangent to them at their minimum points, but not necessarily at every short-run average total cost curve's minimum point.

The Long-Run Average Cost Curve Is Tangent to the Minimum