To find the firm's generalized marginal cost curve in the short run, take the derivative of the _____ cost curve with respect to quantity Q while _____.
A) total; allowing both capital and labor costs to change
B) total; holding the cost of labor fixed
C) total; holding the cost of capital fixed
D) variable; allowing both capital and labor costs to change

Question

Quizplus · Accepted Answer

The generalized marginal cost curve in the short run is found by taking the derivative of the total cost curve with respect to quantity Q while holding the cost of capital fixed, as capital is considered a fixed input in the short run.

To Find the Firm's Generalized Marginal Cost Curve in the Short