10. The long-run average total cost (LRATC) curve shows the ____ .

A. Lowest average variable cost at which the firm can produce any given level of
output .
B. Lowest unit cost at which the firm can produce any given level of output .
C. Highest average fixed cost at which the firm can produce any given level of
output .
D. Lowest marginal cost at which the firm can produce any given level of
output .

Answer : B

Explanation : The long-run average cost (LRATC) curve shows the lowest unit cost
at which the firm can produce any given level of output , assuming
that all factors of production are variable . The costs it shows are
therefore the lowest costs possible for each level of output .