Question

Long run average cost curve is flatter than the short run average cost curve, even when both the curves are U-shaped.

• A. True
• B. False

Answer 1

The correct option is A True

Long run average cost curve is flatter than the short run average cost curve, because short run average cost curve relates to one plant, or the constant scale of output. Long run average cost curve, on the other hand, relates to several plants or the expanding scale of output.