How is the LRAC derived?Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aby drawing an average cost curve in which capital is variable but labor is fixed at the largest amount the firm can hirebby assuming the firm is minimizing total costs at all levels of outputCby finding the largest amount of capital the firm can afford to use, and viewing the output capabilities of that capitalamountdby finding the lowest average cost of producing any level of output, assuming all inputs can be varied

In the long run, all inputs are variables. Firm can increase quantities of both inputs. However, in…

How is the LRAC derived? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b by assuming the firm is minimizing total costs at all levels of output с by drawing an average cost curve in which capital is variable but labor is fixed at the largest amount the firm can hire d by finding the largest amount of capital the firm can afford to use, and viewing the output capabilities of that capital amount by finding the lowest average cost of producing any level of output, assuming all inputs can be varied