Economics A-Level
Long-run average cost (LRAC) curve
What Long-run average cost (LRAC) curve means in Economics A-Level, as defined for AQA.
Definition of Long-run average cost (LRAC) curve
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Reference: AQA
Shows the lowest possible cost per unit of producing different levels of output when all factors of production are variable.
Topics that use Long-run average cost (LRAC) curve
- Economies and diseconomies of scale (AQA A-Level)
Related terms
- Alienation
- Diseconomies of scale
- Economies of scale
- Empirical evidence
- External economies of scale
- Internal economies of scale
- Market structure
- Minimum efficient scale
Using Long-run average cost (LRAC) curve in the exam
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