How can the long-run average cost (LRAC) curve be derived from the short-run average total cost (SRATC) curve? According to Amacher and Pate (2019), the long-run average cost (LRAC) curve represents the lowest attainable average cost of producing any given output (Ch. 8.3). The short run occurs when at least one variable is fixed. To run efficiently a business needs to optimize their fixed cost. If we look at the short-run average total cost curve we can see where a business is maximizing profits. The long-run average cost curve just connects all the points on the short-run average total cost curve that represents where profits are being maximized. The exciting part about the long-run average cost curve is that we can play around with variables and dream a little. You can make...