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 Marginal Cost and Utility

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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?
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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.
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