Economics: Marginal Analysis
$364.03
243
$362.95
242
C
q
Total Cost
Quantity
Marginal cost
of the 243rd item: $1.08
242
items. Cost: $362.95
243
items. Cost: $364.03
Marginal cost is closely related to the derivative C ¢(q) of the
cost function.
f (x + Δx) » f(x) + f ¢(x)∙ Δx
x = 242, Δx = 1
Marginal cost » C ¢(q)