The long - run average cost curve is made up of several short-run
ECONOMICS
WAEC 2014
The long - run average cost curve is made up of several short-run
- A. marginal and average cost curves
- B. average cost curves
- C. average variable cost curves
- D. average variable and total cost curves
Correct Answer: C. average variable cost curves
Explanation
The long-run average cost (LRAC) curve shows the firm's lowest cost per unit at each level of output, assuming that all factors of production are variable. The LRAC curve assumes that the firm has chosen the optimal factor mix, as described in the previous section, for producing any level of output.
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