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.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 17SQ
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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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