The long run supply curve of a firm is the rising part of the ____ curve from and above minimum LRAC together with 0 output for all prices less than the minimum ____.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → LRMC, LRAC
In the long run the firm supplies where price equals LRMC, on its rising part. Below the minimum LRAC it cannot cover its costs, so it supplies nothing.
NCERT (2026-27): “4.4.2 Long Run Supply Curve of a Firm … Combining cases 1 and 2, we reach an important conclusion. A firm’s long run supply curve is the rising part of the LRMC curve from and above the minimum LRAC together with zero output for all prices less than the minimum LRAC. In Figure 4.10, the bold line represents the long run supply curve of the firm.”
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