## Question

Which is the correct formula for SMC? A. $SMC = TC / q$ B. $SMC = SAC / q$ C. $SMC = SAC / q$ D. $SMC = \Delta TC / \Delta q$

✨ Free AI Tools for You

Powered by Chatterbot AI

## Answer

**:**

The correct option is **D**.

The formula for **SMC** (Short-run Marginal Cost) is:

$$ S M C = \frac{\Delta T C}{\Delta q} $$

Here,

- $\Delta TC$ represents the change in total cost.
- $\Delta q$ represents the change in quantity produced.

Thus, the formula $SMC = \frac{\Delta TC}{\Delta q}$ accurately captures how the marginal cost changes with respect to the change in quantity.

India's 1^{st} AI Doubt Solver for CBSE, JEE, and NEET

and then it's just ₹212 a month