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I have read that the long run average cost curve is tangent to all the short run cost curves in a long run. Does that mean that the lowest point of the long run average cost curve represent the least cost plant size as compared to all the other curves?

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  • $\begingroup$ This looks like a school assignment. To get help you need to show some effort. Otherwise question will just be downvoted, closed and automatically deleted. $\endgroup$ – Jesper Hybel Jan 13 at 7:36
  • $\begingroup$ how @JesperHybel $\endgroup$ – Prateek Gupta Jan 13 at 16:32
  • $\begingroup$ Maybe provide a description of what you know and have done already to try to answer the question $\endgroup$ – Jesper Hybel Jan 13 at 17:15
  • $\begingroup$ @JesperHybel Ok done! Btw, it is not a school assignment, i was doing some MCQs where i had to find a correct statement, although i dont know why is this statement wrong as it wasnt the answer of that. $\endgroup$ – Prateek Gupta Jan 14 at 16:11
  • $\begingroup$ @PrateekGupta it does not matter if it school assignment or not any homeworkesque question on this site should have attempt at solving it provided by question asker otherwise it will be closed. $\endgroup$ – 1muflon1 Jan 14 at 16:22