ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the possible income from producing an additional item
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the price of producing one additional unit of a good
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the additional income gained from selling an additional good
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the financial gain from business activity minus expenses
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Detailed explanation-1: -Marginal benefit is the maximum amount a consumer will pay for one additional good or service. Marginal benefit generally decreases as consumption increases. Marginal cost of production is the change in cost for making one additional good or incremental unit of service.
Detailed explanation-2: -Marginal revenue is the increase in revenue that results from the sale of one additional unit of output. While marginal revenue can remain constant over a certain level of output, it follows from the law of diminishing returns and will eventually slow down as the output level increases.
Detailed explanation-3: -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-4: -Marginal revenue definition Marginal revenue refers to the change in total revenue as a result of selling an additional unit.
Detailed explanation-5: -The marginal benefit is highest during consumption of the first unit, and it decreases thereafter. This is due to a decline in the incremental rate of satisfaction associated with the consumption of the additional unit.