'Mortal as I am, I know that I am born for a day. But when I follow at my pleasure the serried multitude of the stars in their circular course, my feet no longer touch the earth.'
 
HomeCalendarFAQSearchMemberlistRegisterLog in

Share | 
 

 Marginal Cost and Utility

View previous topic View next topic Go down 
AuthorMessage
Fixed Cross
Tower
Tower
avatar

Posts : 4154
Join date : 2011-11-09
Location : Will to Power

PostSubject: Marginal Cost and Utility   Sun Oct 27, 2013 8:51 pm

What are they precisely?

Marginal cost is the cost it takes to produce an extra unit.
Marginal utility is the value of an extra unit.

But extra with respect to what?

 

___________
" The strong do what they can do and the weak accept what they have to accept. "
- Thucydides
Back to top Go down
View user profile Online
Thrasymachus
Tower
Tower
avatar

Posts : 3600
Join date : 2011-11-03
Location : Will to Power

PostSubject: Re: Marginal Cost and Utility   Mon Oct 28, 2013 10:39 pm

I think "extra" only means "one more".

So you have a system that can produce 100 X's in time t at total cost of c. The marginal cost would be the increases in t and c if you were to produce 101 X's instead of 100. The marginal utility would be the extra value or profit of the 101st X, minus those increases in t and c.

 

___________
"Since the old God has abdicated, I shall rule the world from now on." --Nietzsche

"It would be wise to exercise caution with one's wishes." --Penny Royal AI

Odinwar <---[truth]---> Jeraz

Peace. War. Love. Wordz


Back to top Go down
View user profile
 
Marginal Cost and Utility
View previous topic View next topic Back to top 
Page 1 of 1

Permissions in this forum:You cannot reply to topics in this forum
Before The Light :: Tree :: The World-
Jump to: