A firm’s LAC curve is U-shaped and has its minimum point at an output of 25000 units per week. In the short-run the firm has a U-shaped SAC that coincides with the LAC at an output of 30,000 units per week?. a. Is SAC rising, falling, or neither at an output of 30,000 units per week. Prove your answer. b. Is SMC greater than, equal to or less than LMC at an output of 29,999 units per week?. Prove your answer.

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Q: LAC curve

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Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.