Short-run marginal cost:
A) is the rate of change of short-run fixed cost as the level of output changes.
B) is the rate of change of short-run total variable cost as the level of output changes.
C) is the rate of change of short-run average cost as the level of output changes.
D) is the rate of change of short-run total cost as the level of output changes.
E) b and d

Question

Quizplus · Accepted Answer

Short-run marginal cost is defined as the change in total cost that comes from producing one additional unit of output. This encompasses both the change in total variable cost (as output changes, variable costs change) and the change in total cost (since total cost includes both fixed and variable costs). Therefore, both B and D accurately describe aspects of short-run marginal cost.

Short-Run Marginal Cost