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.
By contrast, the marginal cost at point A is the slope. of the line BAC (the line tangent to the total cost curve at A); the slope of this line is 10, so the marginal cost when output is 50 units per year is $10 per unit. 266 CHAPTER 8 COSTCURVES.