The correct option is B TC / q LRAC = LRTCQty #160; #160;The average cost is given by total cost divided by the total quantity produced.long run ...

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Graphical Method of Solving Linear Programming Problems

LRAC =

Question

LRAC =

TC / q

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TO / q

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TR / q

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None of these

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Solution

The correct option is B TC / q
$L R A C$ = $\frac{L R T C}{Q t y}$

The average cost is given by total cost divided by the total quantity produced.
long-run average cost(LRAC)curveshows the firm's lowestcostper unit at each level of output, assuming that all factors of production are variable.

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