Which of the Following Is an Accurate Statement About the Envelope

Multiple Choice

Which of the following is an accurate statement about the envelope relationship?

A) At the planned output level, short-run average total cost equals long-run average cost, but at all other output levels, short-run average total cost is lower than long-run average cost.
B) At the planned output level, short-run average total cost equals long-run average cost, but at all other output levels, short-run average total cost is higher than long-run average cost.
C) The long-run average cost curve touches the minimum point of each short-run average total cost curve.
D) The long-run average cost curve is identical to the lowest short-run average cost curve.