Consider the relationship between the long-run total cost curve and the marginal and average cost curve. Marginal cost is MC/Q while average cost is TC/Q.

Question

Quizplus · Accepted Answer

Marginal cost (MC) is the change in total cost (TC) that arises when the quantity produced (Q) is incremented by one unit. Average cost (AC) is the total cost (TC) divided by the quantity produced (Q), not MC/Q.

Consider the Relationship Between the Long-Run Total Cost Curve and the Marginal