Long Run Average Cost (LAC) is:

CA Foundation · Business Economics · MTP · January 2026
Long Run Average Cost (LAC) is:
(A) A. U Shaped
(B) B. Is also called envelope curve
(C) C. Both a and b
(D) D. None of These

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Both a and b

Topics: Theory of Production and Cost

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