# Business Applications of Marginals and Differentials

In this post, we look at some business applications of marginals and differentials. To begin with, let’s make a recap of the topic. If \(C(x)\) represents the cost of producing \(x\) items, then marginal cost \(C^\prime(x)\) is its derivative, and \(C^\prime(x) \approx C(x + 1) - C(x)\). Thus, the cost to produce the \((x + 1)\)st item can be approximated by \(C(x + 1) \approx C(x) + C^\prime(x)\). If \(R(x)\) represents the revenue from selling \(x\) items, then marginal revenue \(R^\prime(x)\) is its derivative, and \(R^\prime(x) \approx R(x + 1) - R(x)\). …