Can the Marginal Cost Be Extended to Life Cycle Cost? A Theoretical Case Study for Transport

In this article, the authors investigated the connection between marginal cost and life cycle cost with the analytic tools of microeconomics. The authors collected the most relevant literature to have a solid basis for comparison. Firstly, the marginal cost was derived and defined later than the life cycle cost. The preliminary result is that the marginal cost could be extended to life cycle cost based on our hypothesis. The extension is of theory has been supported by tools of mathematics. Authors have found algebraic connections between marginal cost and life cycle cost theory. These findings are valuable and important because, with the help, life cycle cost is easier to be estimated.