alleryStart learning →The long-run supply curve of a firm is its long-run marginal cost above the minimum of which curve?
AAverage variable cost
BLong-run average cost
CShort-run marginal cost
DLong-run total cost
Answer & Solution
Correct answer: B. Long-run average cost
In the long run all costs are variable, so the shutdown point is the minimum of long-run average cost.
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