The long-run average cost curve is called a planning curve because it shows what happens to costs when
a
a bigger size of plant is built
b
differents sizes of plants are built
c
variable inputs are increased
d
fixed factors are increased
Explanation
Correct Option
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ADE.me
6 years ago
Myschool the select answer is wrong
see explaination
A long run average cost curve is known as a planning curve. This is because a firm plans to produce an output inthe long run by choosing a plant onthe long run average cost curve corresponding to the output. It helps the firm decide the size of the plant for producing the desired output at the least possible cost.
