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All firms in a competitive industry have long-run total cost curves given by LTC Q = Q 2 + 4 Q where Q is the
All firms in a competitive industry have long-run total cost curves given by LTCQ = Q2 + 4Q
where Q is the firm's level of output.
Could any firm actually have this particular LTC curve?
A) Yes, it would just be very unusual.
B) No, the minimum value of LAC occurs at zero output.
C) No, the minimum value of LAC occurs at an infinity level of output.
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