In the short run, which are most important in determining changes in output?
A)Marginal cost and marginal revenue
B)Total costs and revenue
C)Average cost and average revenue
D)Fixed costs

Question

Quizplus · Accepted Answer

Marginal cost and marginal revenue are most important in determining changes in output in the short run because they directly influence the decision to increase or decrease production based on the additional cost of producing one more unit and the additional revenue gained from selling that unit.

In the Short Run, Which Are Most Important in Determining