Marginal revenue is often shown graphically as a downward-sloping line representing how a company usually has to decrease its prices to drive additional sales. A company looking to maximize its profits will produce up to the point where marginal cost equals marginal revenue. When marginal revenue ...
When we look at the marginal revenue curve versus the demand curve graphically, we notice that both curves have the same intercept on the P axis, because they have the same constant, and the marginal revenue curve is twice as steep as the demand curve, because the coefficient on Q is twic...
Marginal cost is an important factor in economic theory because a company that is looking to maximize its profits will produce up to the point where marginal cost (MC) equalsmarginal revenue (MR). Beyond that point, the cost of producing an additional unit will exceed the revenue generated. E...
The additional cost charged for producing one additional unit of the final product is termed as marginal cost. It is a base for pricing the final product and generating marginal revenue for setting off all the minimum costs of the production....
Answer and Explanation:1 The cost curves are shown in the figure given below. Marginal cost is the additional cost incurred in the production of one more unit of output...
For a monopolist, when does marginal revenue exceed average revenue? When does economic efficiency occur in a free market? How is utility measured in economics? The marginal utility of good Z is 15 and the price is 5, the marginal utility of good y is 10 and the price is 2. Is ...
A monopolist is the sole producer in a market and has the power to influence market price. To maximize profit, a monopolist will produce until marginal revenue from the last unit produced is equal to the marginal cost of producing the last un...
Consider the following scenario to understand the relationship between marginal and average values. Suppose Rajiv is a professional basketball player, and his game log for free throws can be summarized in the table that follows. (a) Fill in the columns to show Rajiv'...
The cost of producing x bags of dog food is given by {eq}C(x)=900+\sqrt{800+20 x^{2}-x} {/eq} where {eq}0 \leq x \leq 5000 {/eq}. Find the marginal-cost function. Marginal Cost Function: We find the marginal cost fu...