The long-run average total cost curve is and is found by using the _. A. upward-sloping; minimum point across all possible ATC curves for a given quantity. B. U-shaped; maximum points along the MC curve at various marginal revenues. C. upward-sloping; maximum points along the MC curve at various marginal revenues. D. U-shaped; minimum point across all possible ATC curves for a given quantity.

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29-10-2019
Business

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The long-run average total cost curve is and is found by using the _. A. upward-sloping; minimum point across all possible ATC curves for a given quantity. B. U-shaped; maximum points along the MC curve at various marginal revenues. C. upward-sloping; maximum points along the MC curve at various marginal revenues. D. U-shaped; minimum point across all possible ATC curves for a given quantity.

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shahzaibnaeem37 shahzaibnaeem37 · Answer 1 · 2019-11-02T03:49:42+01:00

Answer: A. upward-sloping; minimum point across all possible ATC curves for a given quantity

The long run average total cost curve is U shaped because when production is increased the total average cost starts decreasing because of economies of scale and reach a minimum point at a certain level of production,and after that increasing production will increase the average cost, because dis economies of scale come into effect.

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