Which of the following is correct regarding long run cost? 1. It is least cost of producing each level of output 2. LAC curve is envelope of SAC…
CA Foundation · Business Economics · MTP · January 2026
Which of the following is correct regarding long run cost? 1. It is least cost of producing each level of output 2. LAC curve is envelope of SAC curves. 3. LAC is U-shaped
Suggested Answer and Working Notes:
Correct Answer: Option (D)
D. 1, 2 & 3
Topics: Theory of Production and Cost