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At the point where a short-run cost curve touches the long-run one, how do the totals compare?
ASTC is double LRTC
BSTC is below LRTC
CLRTC equals STC
DLRTC is zero
Answer & Solution
Correct answer: C. LRTC equals STC
At the tangency the plant size is optimal for that output, so short-run and long-run total costs coincide.
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