Long-Run Average Cost Curve as the Envelope of Short-Run Average Cost Curves

The long-run average cost curve is the envelope of short-run average cost curves. The optimal scale for a plant is found at the point of minimum long-run average costs.

$ per unit of output

$ per unit of output

Output per time period (units)


Was this article helpful?

0 0
Your Retirement Planning Guide

Your Retirement Planning Guide

Don't Blame Us If You End Up Enjoying Your Retired Life Like None Of Your Other Retired Friends. Already Freaked-Out About Your Retirement? Not Having Any Idea As To How You Should Be Planning For It? Started To Doubt If Your Later Years Would Really Be As Golden As They Promised? Fret Not Right Guidance Is Just Around The Corner.

Get My Free Ebook

Post a comment