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.


Was this helpful?

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

Ask a Question for Free

and then it's just ₹212 a month