In the long run, the sum of all marginal costs up to some level of output gives the ________ at that level.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → total cost
Each marginal cost is the extra cost of one more unit. Adding the marginal costs up to an output gives the total cost of that output. In the long run there is no fixed cost, so total cost is fully built up this way.
NCERT (2026-27): “3.7.2 Long Run Costs In the long run, all inputs are variable. There are no fixed costs. The total cost and the total variable cost therefore, coincide in the long run. Long run average cost (LRAC) is defined as cost per unit of output, i.e. …” “3.7.2 Long Run Costs … Just like the short run, in the long run, the sum of all marginal costs up to some output level gives us the total cost at that level.” |