Long-run marginal cost is:
A) the derivative of the short-run total cost function with respect to Q.
B) the derivative of the long-run total cost function with respect to Q.
C) derived by plugging the firm's long-run input demands into the long-run total cost function.
D) derived by plugging the firm's short-run input demands into the long-run total cost function.

Question

Quizplus · Accepted Answer

Long-run marginal cost is defined as the derivative of the long-run total cost function with respect to the quantity of output (Q). This reflects the cost of producing one more unit of output when all inputs can be varied, unlike in the short run where some inputs are fixed.

Long-Run Marginal Cost Is