MATH 110 BUSINESS CALCULUSCHAPTER 3 INTRODUCTION TO THE DERIVATIVESection 3.8 The First Application: Marginal Analysis C(x)is a Cost Function R(x)is a Revenue Function P(x)is a Profit Function P(x) = R(x) – C(x)Marginal Cost, Revenue, and Profit functions C’(x)is the Marginal Cost Function R’(x)is the Marginal Revenue Function P’(x)is the Marginal Profit Function P’(x) = R’(x) – C’(x)Interpretation: (1)( )( )1C xC xCx+−′≈A Marginal Cost is an approximate cost of one more item. The analogous interpretation applies to a Marginal Revenue and a Marginal Profit. So, a Marginal Revenue is an approximate revenue from the sale of one more item.
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