Marginal Cost

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Lesson Parent: 
Marginal Analysis as an Instantaneous Rate of Change
Problem: 

Let's assume that the marginal cost of a product is $\$110$ for $900$ units. What does that mean?

Answer: 

The marginal cost means that the cost will increase by $\$110$ when we increase our production from $900$ units to $901$ units.

SAMPLE SOLUTION

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Solution: 

The marginal cost is $C'(n)$. It is extremely useful to think about the Leibniz notation version of marginal cost. The marginal cost is

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in Leibniz notation. This means the marginal cost is the change in cost divided by the change in the number of units. So at $900$ units, the marginal cost means that the cost will increase by $\$110<Sign in to see all the formulas>900<Sign in to see all the formulas>901$ units.