Marginal costs typically increase as annual output rises. From point
point B, an extra annual output of 10 000 hockey sticks increases annual
costs by $30 000. Each extra stick costs $3. From point C to point D, an
extra output of 10 000 hockey sticks increases annual costs by $150 000.
Each extra hockey stick then costs $15. This is a case of increasing
marginal cost. At point Z, the slope of the curve is equal to the slope of
the straight line tangent to the curve at point Z. The slope of the tangent
line is
Figures 2-8 and 2-9 show that with non-linear functions the slope of
the curve changes as we move along the curve. For example, in Figure
8 , the slope of the curve falls as the expenditure on pollution clean-up
increases. In Figure 2-9 , the slope of the curve increases as the volume
of production increases.
65 / 8 =8.13.