The concept that can be demonstrated graphically and is relevant to a firm’s decision-making process of finding the most efficient level of production is the Long-run average total cost (LRATC) curve.
The LRATC curve illustrates the lowest average total cost of production achievable at different output levels when all inputs can be varied. It helps firms determine the most efficient scale of production by showing economies of scale, constant returns to scale, and diseconomies of scale.
While the average product curve can also be graphed and relates to production efficiency, it specifically focuses on the output per unit of input, rather than the costs associated with different levels of production, which is more directly relevant to the overall decision-making concerning efficient production levels.
The elastic demand curve and inelastic demand curve deal more with pricing and quantity demanded rather than directly addressing production efficiency.
Therefore, the correct answer is Long-run average total cost.
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