Derivation Of LMC from SMC's.
In this video I will explain long run Marginal Cost Curve. LMC can be derived from Short run Marginal cost curves SMC1,SMC2 and SMC3.AQ1 the perpendicular curve intersects SMC at point N which lies both on short run and long run Average cost curves. So N is the point which provides basis for LMC. B is the common point of SAC2 and SMC2 which also lies on LAC. Now point C on SAC3 and LAC, W is the point which lies on SMC3. Thus by joining points N,B&W we arrive at LMC. LMC is flatter curve than short run Marginal curves (SMC1,SMC2,SMC3).
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