In the short run, total cost is equal to marginal cost when one unit of output is produced.

Question

Quizplus · Accepted Answer

In the short run, total cost includes both fixed and variable costs, whereas marginal cost refers to the additional cost of producing one more unit of output. Total cost is not equal to marginal cost when one unit of output is produced because total cost also includes fixed costs, which are not part of marginal cost.

In the Short Run, Total Cost Is Equal to Marginal