Vidyalelo
Commerce · Q360

Economics

Graduate and Post Graduate · Commerce · question 360

Q360

In the long run, normal profits are included in the _____ curve

A.
LAC
Answer
B.
LMC
C.
AFC
D.
SAC

Answer: Option A

Solution

Answer: Option A
Solution:
In the long run, normal profits are included in the LAC curve. Long run average cost (LAC) can be defined as the average of the LTC curve or the cost per unit of output in the long run.