What is the correct answer?


Which is the correct statement?

A. The U shape of long-run cost curve is less pronounced than the short-run cost curves

B. The U shape of the short-run cost curves is less pronounced than the long-run cost curves

C. The U shape of the long-run cost curve is more pronounced than the short-run cost curves

D. The long-run cost curves are never U shaped

Correct Answer :

A. The U shape of long-run cost curve is less pronounced than the short-run cost curves

The long run cost curve,i.e.
LAC curve is U-Shaped but less pronounced than the SAC, because it is actually saucer-type )

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