passwella.
Menu

WAEC Economics 2014 Question 25

Question 25

Theory of Costs and Revenue

The long-run average cost curve is made up of several short-run

  1. A.marginal and average cost curves.
  2. B.average cost curves.
  3. C.average variable cost curves.
  4. D.average variable and total cost curves.
Show the answer and explanation

Answer: B (average cost curves.)

Explanation

The LRAC is the envelope of many short-run average cost curves.