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 Marginal Cost and Utility

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Fixed Cross
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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?

 

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Thrasymachus
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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.

 

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"We must, now armed with such a language, realize the “transcendental unity of ideas,” through a new morality that aims, not to hypostasize experience and grasp in positive knowledge a series of particular virtues and vices, but rather to fully explicate this continuity; where philosophy exists to represent this transcendental order, morality most exist to mediate the two spheres, the spheres of experience and ideality." --Parodites

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