Answer to Question #85126 in Microeconomics for Ayanda Lubisi

Question

Each point on the long-run average cost curve is a …

1. minimum point on some short-run average cost curve as well.
2. level of average cost that is the lowest possible average cost for that level of output.
3. point on the long-run marginal cost curve as well because the long-run average cost
curve and long-run marginal cost curve are always identical.
4. cost of production based on a particular input price ratio (Other points on the long-run
average cost curve show cost of output with alternative input prices.)

Answer 1

Each point on the long-run average cost curve is a minimum point on some short-run average cost curve as well.

So, the correct answer is 1.