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7.5.4 long-run cost function
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What LRAC Shows

What LRAC Shows

Lower-envelope diagram showing SRAC curves and the LRAC curve

Long-run average cost (LRAC) is the lowest average cost a firm can achieve at each output level when every factor of production is variable. In the long run, the firm can choose any scale of plant.

7.5.4 long-run cost function Lesson

  1. Intl A Level
  2. /Economics
  3. /7.5.4 long-run cost function

Step-by-step lessons on CIE Intl A Level Economics 7.5.4 long-run cost function. Each one builds up to exam-style questions.