why LAC is U shaped
twinkle101:
what is lac
Answers
Answered by
6
LAC curve is derived from short run average cost curves. Whereas LAC is a continuous curve. The reason behind the U-shape of the curve is the Law of Returns to Scale. According to this law, as plant size increases, the average cost of production decreases due to economies of scale.
Answered by
5
I think it's helpful for you ✌️✌️✌️
Attachments:
Similar questions