Asked by Ke'Darius Thornton on Jul 14, 2024
Verified
The long-run average total cost curve is tangent to an infinite number of short-run _____ cost curves.
A) total
B) marginal
C) average variable
D) average total
Average Total Cost
The total cost divided by the quantity of output produced, representing the cost per unit of output.
Marginal Cost
The outgoings associated with the production of one more unit of a product or service.
Average Variable Cost
The total variable costs divided by the quantity of output produced; it varies with the level of output.
- Identify the differences between short-run and long-run periods as they pertain to the costs of production.
Verified Answer
SN
siyabonga ntelaJul 18, 2024
Final Answer :
D
Explanation :
The long-run average total cost curve is tangent to an infinite number of short-run average total cost curves because it represents the lowest possible cost at which a firm can produce any given level of output when all inputs are variable, including those that are fixed in the short run.
Learning Objectives
- Identify the differences between short-run and long-run periods as they pertain to the costs of production.