Economics · Cost Theory

Which of the following statements regarding the long-run cost curves is NOT correct?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1The long-run average cost curve cuts the long-run marginal cost curve at the minimum point of the marginal cost curve.✓
2The upward-sloping part of the LAC curve corresponds to decreasing returns to scale.
3The downward-sloping part of the LAC curve corresponds to increasing returns to scale.
4The long-run average cost (LAC) curve is typically U-shaped.

Correct answer

The long-run average cost curve cuts the long-run marginal cost curve at the minimum point of the marginal cost curve.

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Chapter Practice

Want more practice questions on Cost Theory?

Solve complete topic-wise tests with detailed solutions on GkGet.

Recommended practice questions in Economics · Cost Theory

Which of the following territories was annexed by Lord Dalhousie under the pretext of misgovernance, and not directly through the Doctrine of Lapse?

What was the primary stated reason for the Partition of Bengal in 1905 by Lord Curzon?

Which of the following events is considered the immediate trigger for the launch of the Non-Cooperation Movement by Mahatma Gandhi?

Related Practice Questions