Which of the following is true about the long runaverage cost curve? The long run average cost
Fantastic news! We've Found the answer you've been seeking!
Question:
Which of the following is true about the long runaverage cost curve?
The long run average cost curve is comprised of all the lowestpoints of each of the short run average cost curves because no firmwill operate at a level of higher per-unit costs in the long runthan in the short run.
The long run average cost curve can be found as the MC fromabove the shut down point onward.
The long run average cost curve is shaped like a bell and risesbecause of economies of scale while falling because ofdiseconomies.
The long run average cost curve cannot be equal to or lie belowany short run average cost curve because in the short run allfactors of production can be variable.
Related Book For
Posted Date: