Long-run average total cost must always be
A)rising
B)declining
C)greater than or equal to the marginal unit of variable cost
D)greater than or equal to the short run average total cost
E)less than or equal to short-run average total cost

Question

Quizplus · Accepted Answer

In the long run, firms can adjust all inputs, leading to economies of scale, which can make long-run average total cost less than or equal to short-run average total cost.

Long-Run Average Total Cost Must Always Be