Marginal Cost

The marginal cost is the derivative of the cost function.


Zoe, monopolist of the lemonade market on her street, faces the following production costs $$ C ( Q ) = 2 Q $$

Her marginal cost is $$ MC ( Q ) = \frac{d C ( Q )}{d Q} = 2 $$

It costs Zoe $2 to produce one additional liter of lemonade.


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