Question

Explain cost curve in the short run and long run with the help of diagram​

Answer 1

Answer:

In the short-run, if output is reduced, average cost will rise because the fixed costs will work out at a higher figure. ... Thus, LAC curves are flatter than the short-run cost curves, because, in the long-run, the average fixed cost will be lower, and variable costs will not rise to sharply as in the short period.