Question

Long-run marginal cost shows

Select one:

a. the change in long-run fixed costs that occur with a change in output.

b. the change in output that results from a change in long-run variable cost.

c. the rate at which long-run total cost changes when output changes.

Answer 1

The correct option is C). the rate at which long-run total cost changes when output changes.

The change in the long-run total cost of producing a good or service resulting from a change in the quantity of output produced. Like all marginals, long-run marginal cost is an increment of the corresponding total. It is the change in the long-run total cost divided by or resulting from, a change in quantity. Long-run marginal cost is guided by returns to scale rather than marginal returns.