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Figure 7.9 Long-Run and Short-Run Marginal Costs
MCSR,10, MCSR,20, and MCSR,30 are derived from ATCSR,10, ATCSR,20, and ATCSR,30, respectively. The long-run marginal cost curve must intersect MCSR,10, MCSR,20, and MCSR,30 at A, Y, and B, the points at which labor is cost-minimizing for Q = 10, Q = 20, and Q = 30 given image, image, and image. Therefore, A, Y, and B are the long-run marginal costs for Q = 10, Q = 20, and Q = 30, respectively, and the long-run marginal cost curve MCLR connects A, Y, and B.