Jan 11, 2008. managed), the resulting price will be one that equals SRMC at the efficient equilibrium between supply and demand. 1.3 The definition of short run marginal cost (SRMC). The marginal concept in economics refers to the rate at which one quantity changes with respect to extremely small increases in another. Price Formation in Organized Wholesale Electricity Markets Docket No. AD14-14-000 Staff Analysis of Operatorā€Initiated Commitments in RTO and…