So, because the tangent line is a good approximation of the cost function, the derivative ofC— called themarginal cost— is theapproximateincrease in cost of producing one more item.Marginal revenueand marginal profit work the same way. Before doing an example involving marginals,...
In calculus, marginal cost can be defined as the firstderivativeof the cost function with respect to the quantity/output. Or, to find marginal cost we can use the formula: MC = ΔC/ΔQ, where ΔC = change in production cost and ΔQ = change in quantity. ...
Calculusisanimportanttoolineconomics.Inthissection,wewillusethederivativetoexploreratesofchangeinvolvingeconomicquantities(量)suchascost,revenue,profitetc..1.MarginalAnalysis边际分析 Margin:n.[C]Theemptyspaceatthesideofaprintedpage页边空白Marginal:adj.relatingtoachangeincost,valueetc.whenonemorethingisproduced...