The apparent trade-off between functional flexibility and functional properness has been identified for the case of the quadratic cost function. Using the quadratic cost function, the proposed ...

Learn about the marginal cost of production and marginal revenue and how the two measures are used together to determine the profit maximization point.

If the total cost function is known -- or can be estimated -- the marginal cost can be seen as the derivative of your total production costs with respect to the level of output.