Area under short run marginal cost (SMC)

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Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

Area under short run marginal cost (SMC) is _______.

Options:

TVC

TFC

AFC

AVC

Correct Answer:

TVC

Explanation:

The correct answer is Option 1: TVC

Short-Run Marginal Cost (SMC) = ΔTVC / ΔQ
TVC (Total Variable Cost) is obtained by summing all marginal costs (SMC) over different levels of output.
Graphically, TVC is the area under the SMC curve up to that level of output.