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Marginal Analysis

Let R(x) be the revenue for a production x, C(x) the cost, and P(x) the profit. Then

P(x)=R(x)-C(x),

and the marginal profit for the x_0th unit is defined by

P^'(x_0)=R^'(x_0)-C^'(x_0),

where P^'(x), R^'(x), and C^'(x) are the derivatives of P(x), R(x), and C(x), respectively.

See also

Derivative

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Cite this as:

Weisstein, Eric W. "Marginal Analysis." From MathWorld--A Wolfram Resource. https://mathworld.wolfram.com/MarginalAnalysis.html

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