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 ...

116

You visited us 116 times! Enjoying our articles? Unlock Full Access!

Graphical Method of Solving Linear Programming Problems

LRAC =

Question

LRAC =

TC / q

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

TO / q

No worries! We‘ve got your back. Try BYJU‘S free classes today!

TR / q

No worries! We‘ve got your back. Try BYJU‘S free classes today!

None of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

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.

Suggest Corrections