Which of the following is also known as the firm's planning curve?
A)The average total cost curve
B)The total cost curve
C)The long-run average cost curve
D)The long-run marginal cost curve
E)The fixed cost curve

Question

Which of the following is also known as the firm's planning curve?​
A)The average total cost curve
B)The total cost curve​
C)The long-run average cost curve​
D)The long-run marginal cost curve​
E)The fixed cost curve​

Quizplus · Accepted Answer

The long-run average cost curve is also known as the firm's planning curve because it shows the firm's lowest possible average cost for each level of output in the long run. It helps the firm make decisions about optimal plant size and output levels. The other curves listed do not have this specific function.

Which of the Following Is Also Known as the Firm's