The long-run marginal cost LMC)is the increase in the cost incurred by the firm when producing one additional output, holding:
A)neither the workforce nor the production facility constant.
B)the workforce and the production facility constant.
C)the workforce constant.
D)the production facility constant.

Question

Quizplus · Accepted Answer

In the long run, all inputs are variable, so neither the workforce nor the production facility is held constant when calculating the long-run marginal cost.

The Long-Run Marginal Cost LMC)is the Increase in the Cost