If a linear short-run variable cost function is estimated using cross-sectional data, then the corresponding marginal cost function will be
A) U-shaped.
B) upward sloping.
C) downward sloping.
D) horizontal.

Question

Quizplus · Accepted Answer

In a linear short-run variable cost function, the marginal cost is constant, which means the marginal cost function is horizontal.

If a Linear Short-Run Variable Cost Function Is Estimated Using