At the minimum point of the LRAC curve, ______ is observed.

IRS

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CRS

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DRS

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None of these

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Solution

The correct option is C CRS
The flat portion of the long run average cost curve shows how it exhibits constant returns as the firm operates at its optimal size.

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At the minimum point of the LRAC curve, ______ is observed.

The correct option is C CRSThe flat portion of the long run average cost curve shows how it exhibits constant returns as the firm operates at its optimal size.

The correct option is C CRS
The flat portion of the long run average cost curve shows how it exhibits constant returns as the firm operates at its optimal size.