Problem
A U-shaped long-run average cost curve is the envelope of U-shaped short-run average cost curves. On what part of the curve (downward sloping, flat, or upward sloping) does a short-run curve touch the long-run curve? (Hint: Your answer should depend on where on the long-run curve the two curves touch.)
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.