Let the total cost (TC) = for a firm in the short run, which of the following expressions represents the correct relationship between marginal cost (MC) and average cost (AC)?
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4 marks, −1MicroeconomicsCosts of productionShort-run cost curves and their relationshipsHardabout 1 min
CUET-PG 2025 Question 40: Costs of production
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Let the total cost (TC) = C = f(X) for a firm in the short run, which of the following expressions represents the correct relationship between marginal cost (MC) and average cost (AC)? (A) slope of AC = (1/X)/([AC - MC]) (B) slope of AC = 1/X[AC - MC] (C) MC = AC + {X}·{slope of AC} (D) X²·{slope of AC} = X²· MC - C
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What this question tests
This question is on Short-run cost curves and their relationships, part of Costs of production in Microeconomics.
Fixed, variable, average and marginal cost, and how marginal cost relates to average cost.
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