The long-run average cost curve always:
A)reflects the law of diminishing returns.
B)reflects constant returns to scale.
C)shows the least-cost method of production for each level of output.
D)has an inverted U-shape.

Question

Quizplus · Accepted Answer

The long-run average cost curve shows the least-cost method of production for each level of output, as it represents the lowest possible cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

The Long-Run Average Cost Curve Always