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lectur24-page6 - of economic decision analysis The process...

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Marginal cost: change in total variable cost associated with a one unit change in output. (MC) MC = TVC / Q = (TVC 1 - TVC 0 ) / (Q 1 - Q 0 ) = ($271,110 - $95,000) / (100,000 - 50,000) = ($176,110 / 50,000) = $3.52/BUSHEL Marginal cost and marginal revenue are the two most important concepts
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Unformatted text preview: of economic decision analysis ! The process is called marginal analysis We will rationally decide to increase production or venture on a business deal only if: MR >= MC...
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