Whose argument is stronger regarding the SAC curves and the LAC​ curve? A. The draftsman since the lowest point on each SAC curve will have a horizontal tangent line which only occurs at the lowest point on the LAC. B. Jacob Viner since the SAC curves can be adjusted slightly and still keep their​ U-shape in a way that makes their lowest points end up on the LAC curve. C. Jacob Viner since the​ long-run average cost curve must be composed of the lowest points on any individual​ short-run average cost curve. D. The draftsman​ since, while it is true that the points of tangency of the SAC curves with the LAC curve are at each SAC​ curve's minimum, it is impossible to illustrate it accurately.

NB: This is a business question, not biology.

SAC (Short-run Average Cost) and LAC (Long-run Average Cost)

The stronger argument regarding the SAC (Short-run Average Cost) curves and the LAC (Long-run Average Cost) curves is:

A. The draftsman since the lowest point on each SAC curve will have a horizontal tangent line which only occurs at the lowest point on the LAC.

Explanation:

The costs of all factors of production become variable in the long run.  But in the short-run, some costs are variable, and some are fixed.  When the producer starts operating over the long run period, it can then operate without the constraints imposed by the presence of the fixed-cost factors. Therefore, in the long run, the average cost (LAC) is equal to the short-run average cost (SAC) because there is an unconstrained minimum average cost at all output levels.

c. is the correct answer

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