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Long-Run Marginal Costs Like all average cost curves, the long-run (LATC) curve has its own marginal cost curve. The long-run marginal cost (LMC) curve isn't a composite of short-run marginal cost curves. Rather, it's computed on the basis of the costs reflected in the long-run ATC curve itself. We won't bother to compute those costs here. Note, however, that the long-run MC curve-like all MC curves--intersects its associated average cost curve at its lowest point.

Long-Run Marginal Costs Like all average cost curves, the long-run (LATC) curve has its own marginal cost curve. The long-run marginal cost (LMC) curve isn't a composite of short-run marginal cost curves. Rather, it's computed on the basis of the costs reflected in the long-run ATC curve itself. We won't bother to compute those costs here. Note, however, that the long-run MC curve-like all MC curves--intersects its associated average cost curve at its lowest point.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**Long-Run Marginal Costs** Like all average cost curves, the long-run (LATC) curve has its own marginal cost curve. The long-run marginal cost (LMC) curve isn’t a composite of short-run marginal cost curves. Rather, it’s computed on the basis of the costs reflected in the long-run ATC curve itself. We won’t bother to compute those costs here. Note, however, that the long-run MC curve—like all MC curves—intersects its associated average cost curve at its lowest point.
Transcribed Image Text:**Long-Run Marginal Costs** Like all average cost curves, the long-run (LATC) curve has its own marginal cost curve. The long-run marginal cost (LMC) curve isn’t a composite of short-run marginal cost curves. Rather, it’s computed on the basis of the costs reflected in the long-run ATC curve itself. We won’t bother to compute those costs here. Note, however, that the long-run MC curve—like all MC curves—intersects its associated average cost curve at its lowest point.
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