Chapter 56, Problem 7MCQ

To determine

The short-run average cost curve when the current amount of fixed cost minimizes the long-run average total cost for the quantity of output being produced

Explanation of Solution

The short-run average cost curve is necessarily touching the long-run average total cost curve when the current amount of fixed cost minimizes the long-run average total cost for the quantity of output being produced.

Therefore, the correct option is e.

Economics Concept Introduction

Introduction:

Short-run the short time period in which a business firm operates business functions and there is at least one input is fixed.