Question $18$

$10$ pts

Consider the short$-$run and long$-$run average cost $($AC$)$ functions. Which of the following statements is true?

The long$-$run AC lies beneath the short$-$run AC and the two curves never touch.

The short$-$run AC always lies below the long$-$run AC

The long$-$run $AC$ intersects the short$-$run $AC$ at its minimum point

The long$-$run $AC$ lies beneath the short$-$run $AC$ and touches at just one point.