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Results tagged with cost
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user 5902
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Why does marginal cost (derivative of total cost) differ from variable cost at each level?
Why does the marginal cost equation (as the derivative of total cost equation) make predictions of variable costs that are very different from costs calculated using the Total Cost equation? … Marginal cost is simply the change in cost divided by the change in quantity.
MC = ΔC / ΔQ
However, marginal cost also can be computed using the derivative of the Total Cost function. …
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