If the long-run total cost curve for each firm is given by TC = 500Q - 20Q² + Q³, where Q is the quantity of the product, in the long run, the marginal cost is:

Question

Quizplus · Accepted Answer

The marginal cost (MC) is found by taking the first derivative of the total cost (TC) function with respect to quantity (Q). The derivative of TC = 500Q - 20Q^2 + Q^3 with respect to Q is MC = 500 - 40Q + 3Q^2, which corresponds to option B.

If the Long-Run Total Cost Curve for Each Firm Is