Michael: > Anyway, marginal means nothing more than incremental. What am I missing?
You are not missing anything. Marginal cost means the first derivative of the cost function with respect to quantity, provided that the cost function is smooth with respect to quantity. How this is connected to all these Maxian things is beyond me. It takes me two lines to explain it this way to a non-economist such as myself, provided that they understand basic calculus. Marginal cost pricing assumes that price is independent of quantity, so profit is maximized at when price is equal to the marginal cost. It is as simple as that. Whether you buy this or not is up to your taste. Read Mirowsky's "More Heat than Light" to see what I mean. Boy, it is difficult to explain such things to English literature people as well as to some Marxian economists. Sabri _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
