Before The Light
Would you like to react to this message? Create an account in a few clicks or log in to continue.


'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.'
 
HomeLatest imagesSearchRegisterLog in

Before The Light :: Storm :: The World
 

 Marginal Cost and Utility

Go down 
2 posters
AuthorMessage
Fixed Cross
Tower
Tower
Fixed Cross


Posts : 7307
ᚠ : 8696
Join date : 2011-11-09
Location : Acrux

Marginal Cost and Utility Empty
PostSubject: Marginal Cost and Utility   Marginal Cost and Utility Icon_minitimeSun 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?
Back to top Go down
individualized
Tower
Tower
individualized


Posts : 5737
ᚠ : 6982
Join date : 2011-11-03
Location : The Stars

Marginal Cost and Utility Empty
PostSubject: Re: Marginal Cost and Utility   Marginal Cost and Utility Icon_minitimeMon 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
 
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 :: Storm :: The World-
Jump to: