Question

What is the utility of LAC Curve?

Answer 1

Answer:

The LAC curve is a planning curve because it is the curve which helps a firm to decide which plant is to be established in order to produce an output level consistent with the optimal cost. The firm selects that short run plant which yields the minimum cost of producing the anticipated output level.

hope you get it...

Answer 2

LAC curve helps to decide the plant's size for the production of output.

What are the uses of the LAC curve?

• This curve is not decided the minimum cost of any output but it only decides the plant to produce output at minimum cost
• It helps to decide decision making for the firm and manage the firm
• It decides the size of the firm and plant so this curve is called a planning curve
• It also helps the company economically