It also stimulates production of IGF-1. GH is used as a prescription drug in medicine to treat children's growth disorders and adult growth hormone deficiency. In the United States, it is only available legally from pharmacies, by prescription from a doctor.
Marginal cost is the change in total cost when another unit is produced; average cost is the total cost divided by the number of goods produced. Distinguish between marginal and average costs. The marginal cost is the cost of producing one more unit of a good.
So we must find out if marginal cost is greater than or less than $300. To do this, calculate total cost for 200 doses and 201 doses, and calculate the increase in total cost. Multiplying quantity by average total cost, we find that total cost rises from $40,000 to $40,401, so marginal cost is $401.ith marginal cost of $1,000 per diamond, or $1 million per thousand diamonds, the monopoly will maximize profits at a price of $7,000 and a quantity of 6,000. Additional production beyond this point would lead to a situation where marginal revenue is lower than marginal cost.