Marginal cost refers to the change in total cost arising from the production of one additional unit. For example, in a manufacturing firm, the marginal cost will give a measure of the change in total ...

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1. If marginal product is decreasing, then average product must also be decreasing. 2. For a fixed-proportion technology, inputs cannot be substituted for each other in production. 3. The marginal ...

This is a preview. Log in through your library . Abstract This paper analyses the relationship between traffic volume and maintenance costs, and derives estimates for the cost elasticity and the ...