Consider the relationship between the long-run total cost curve and the marginal and average cost curve. The slope of the total cost curve at each point is how you derive the marginal cost curve while the slope from the origin to a point on the total cost curve is how you derive the average cost curve.

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Quizplus · Accepted Answer

This is a correct statement about the relationship between the long-run total cost curve and the marginal and average cost curves. The marginal cost curve is derived from taking the derivative of the total cost curve, which gives us the slope at each point. The average cost curve is derived by dividing total cost by output, which is represented by the slope of a line from the origin to a point on the total cost curve. This statement is true. The marginal cost curve is derived from the slope of the total cost curve at each point, while the average cost curve is derived from the slope from the origin to a point on the total cost curve.

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