'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

Go down 
Fixed Cross

Posts : 5434
Join date : 2011-11-09
Location : East of Aρχή

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

Posts : 4712
Join date : 2011-11-03
Location : phenomenorationalism and misanthropy

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.
Back to top Go down
View user profile
Marginal Cost and Utility
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: