what is the relationship between long run average cost curve and
short run average cost curve?
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The long run average total cost curve is the lowest average
total cost for producing each level of output. It depicts the per
unit cost of producing a good or service in the long run when all
inputs are variable.
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the long run curve is at a minimum point
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Long run average cost curve is known as envelope curve because
it is formed by enveloping the short run average cost curves and it
helps the entrepreneur in long term planning that is why it is also
called planning curve.