Question

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.

Answer 1

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.

Step-by-step explanation: