Answer to Question #130873 in Microeconomics for Ahmad

Question

illustrate the link between the cost-minimization problem and total cost curve. What would happen to the total cost curve if the firm increases level of output?

Answer 1

The long-run total cost curve represents the total cost associated with the solution to the long-run cost minimization problem for each level of output.

Total cost curve will not change, and total cost will increase if the firm increases the level of output.