0
$\begingroup$

Can anyone please provide an intuitive explanation and proper mathematical reason for non-intersection of SRAC and LRAC at the minimas of SRAC?

I am seeing conflicting [1] [2] answers on the site regarding this. My textbook (Chapter 10, page 355) too does not do a great job in explaining the graph:

enter image description here

$\endgroup$
9
  • $\begingroup$ @AdamBailey it looks like duplicate to me too but I am not sure to close it with mod vote outright consider voting close $\endgroup$ – 1muflon1 May 6 at 11:52
  • $\begingroup$ @AdamBailey More like literal duplicate. I am going to shamelessly advertise my simple explanatory example before voting to close though. $\endgroup$ – Giskard May 6 at 11:56
  • $\begingroup$ @Giskard What is y in your explanation? (I don't have sufficient reputation to comment) $\endgroup$ – reasonStore May 6 at 12:55
  • $\begingroup$ @AdamBailey The answer linked is not intuitive or exhaustive, it just has a complicated use case of Cobb Douglas; and neither does it cover why at minima of LRAC, SRAC also has its minima. $\endgroup$ – reasonStore May 6 at 12:57
  • $\begingroup$ @reasonStore Output/quantity. Your textbook seems to denote it by $q$. Also Adam Bailey is linking to a different question then I am; I am linking to the one with the Cobb-Douglas answer. You can read his - perhaps - easier to comprehend answer behind his link. $\endgroup$ – Giskard May 6 at 14:20