What Does the Long-Run Average Cost Curve Show

Multiple Choice

What does the long-run average cost curve show?

A) the interaction between average fixed cost and marginal cost
B) the lowest average cost to produce each output level in the long run
C) the distinction between long-run fixed and long-run variable costs
D) the lowest average marginal cost of producing each output level at any time.
E) Answers A, B, and C are correct.