Marginal Cost Function - The marginal Cost of producing cost at production level x. x units. The value is the rate at which costs are increasing with respect to the level of production. Marginal Revenue Function Amount of income in The value is the rate of increase in selling x units revenue per unit increase in sales. Application are for discrete values or points, however, for purposes of applying calculus principles to determine solutions, the values or points are considered to be part of a continuum.
Profit is maximized at a production level for which marginal revenue equals marginal cost.