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Article

CAN THE MARGINAL COST BE EXTENDED TO LIFE CYCLE COST? A THEORETICAL CASE STUDY FOR TRANSPORT

DOI: 10.7708/ijtte2022.12(2).02


12 / 2 / 170-175 Pages

Author(s)

Adam Torok - BME - Budapest University of Technology and Economics, Faculty of Transport Engineering and Vehicle Engineering, Department of Transport Technology and Economics, H-1111, Budapest, Muegyetem rkp 3, Hungary -

Tibor Sipos - KTI – Institute for Transport Sciences, H-1119, Budapest, Than Karoly 3-5, Hungary -


Abstract

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.


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Acknowledgements:

Authors are grateful for the support of the OTKA-K21-138053 Life Cycle Sustainability Assessment of road transport technologies and interventions supervised by Maria Csete Szalmane.


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