The long-run average cost curve traces the lowest points of the AVC and ATC for all firms.

Name: The long-run average cost curve traces the lowest points of the AVC and ATC for all firms.
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The long-run average cost curve traces the lowest cost at which a firm can produce any given level of output in the long run, when all inputs are variable. It does not trace the lowest points of the Average Variable Cost (AVC) and Average Total Cost (ATC) curves, which are short-run concepts.

The Long-Run Average Cost Curve Traces the Lowest Points of the AVC