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Regardless of the level of output, the long run average total cost curve is the least...

Regardless of the level of output, the long run average total cost curve is the least expensive cost curve.

 True

 False

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Answer #1

Long-run average cost curve is formed out of combination of various short-run average cost curves.

Each short-run average cost curve describes the level of output with respect to a specific level of fixed costs. In other words, each short-run average cost curve determine least cost production of particular level of output.

Since, long-run average cost curve is combination of various short-run average cost curves, each level of output with respect to the long-run average cost curve indicates least cost of producing such output.

So, regardless of the level of output, the long-run average total cost curve is the least expensive cost curve.

Hence, the given statement is True.

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