2
$\begingroup$

As you can see from the graph, the LRATC doesn't touch the SRATC curves when they're at their minimum. Why is this so?

enter image description here

$\endgroup$
1
  • $\begingroup$ Because it is a bad graph. $\endgroup$ – Giskard Oct 17 '17 at 7:20
2
$\begingroup$

Denesp's comment is your full answer: it's a badly-drawn chart which fails to do its one job, that was to illustrate that the long-run cost curve consists of joining up the minima of the short-run cost curves.

$\endgroup$
1
$\begingroup$

There is a nice explanation, just take a look at the source here.

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.