Long-Run Marginal Cost Is

question 19

Multiple Choice

Long-run marginal cost is:

• A) the derivative of the short-run total cost function with respect to Q.
• B) the derivative of the long-run total cost function with respect to Q.
• C) derived by plugging the firm's long-run input demands into the long-run total cost function.
• D) derived by plugging the firm's short-run input demands into the long-run total cost function.

---

Definitions:

Sell-Off

Transaction in which assets are sold by one firm to another.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Discount Size

Pertains to the magnitude or amount of reduction in price offered on goods or services, often used as a sales promotion technique to increase consumer demand or clear inventory.

Maturity Period

The duration or lifetime until a financial instrument, such as a bond or loan, is due to be repaid in full.