WAEC - Economics (2014 - No. 22)
The long - run average cost curve is made up of several short-run
marginal and average cost curves
average cost curves
average variable cost curves
average variable and total cost curves
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The long-run average cost (LRAC) curve shows the firm's lowest cost per unit at each level of output, assuming that all factors of production are variable. The LRAC curve assumes that the firm has chosen the optimal factor mix, as described in the previous section, for producing any level of output.