Question

Which of these statements is correct?
A. when the long run average cost curve Is falling, It will cut through the short run average cost curves
B.when the plant size is optimum, the long run average cost curve will cut the short run average cost curve
C. when the plant size is optimum, the minimum polnt of one short run average cost curve and of the long run average cost curve will be common
D.long run average curve will intersect the lowest short run average cost curve​

Answer 1

Answer:

The option A,B and C is incorrect.

Thus the correct statement is Option D

Answer 2

Option D is the correct answer to this question.

• The long run is the period when it depends on the firm precise lease.
• No costs are fixed in the long run as new factories and purchases of new machinery in existing facilities.
• At least if total revenues remain unchanged each firm must seek out the lowest-cost methods of production.
• They may lose sales to competitors with a range of combinations that find a  way to produce and sell for less.