ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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purchasing a unit.
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distributing that unit.
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producing the next unit.
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producing a different unit.
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Detailed explanation-1: -Marginal cost is the money paid for producing one more unit of a good. Marginal revenue is the money earned from selling one more unit of a good. In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of? Producing the next unit.
Detailed explanation-2: -In economics, the marginal cost is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity.
Detailed explanation-3: -While marginal product concerns changes in output, marginal cost is a representation of the costs incurred when additional units of a product are produced.
Detailed explanation-4: -Marginal cost (MC) refers to the increase in cost that is occasioned by the production of an extra unit. It is the additional cost of producing an additional unit. Marginal revenue (MR) refers to the extra profit made by producing or selling an extra unit.
Detailed explanation-5: -In a perfectly competitive market, price equals marginal cost and firms earn an economic profit of zero. In a monopoly, the price is set above marginal cost and the firm earns a positive economic profit. Perfect competition produces an equilibrium in which the price and quantity of a good is economically efficient.