Skip to main content
3 of 3
edited tags
Aqqqq
  • 392
  • 3
  • 14

Is it possible that the minimum point of a short run cost curve does not touch the long run cost curve?

In the answer to this question, the answerer said "the minimum point of a short run cost curve will be above the long run cost curve". Is it true? If so, how would it be so?

I thought that if e.g. the short-run capacity is too small or too big, it would just be represented as different short-run cost curve tangent with the long-run cost curve.

Aqqqq
  • 392
  • 3
  • 14