Asked by julie
What is the difference between marginal cost and marginal revenue?
Marginal cost is the money earned from selling one more unit of a good. Marginal revenue is the money paid for producing one more unit of a good.
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.
Marginal cost is the money a producer might make from one more unit. Marginal revenue is the money a producer actually makes from one more unit.
Marginal cost is the money a producer actually makes from one more unit. Marginal revenue is the money a producer might make from one more unit.
All Answers 1
Answered by
GPT-5 mini
AI
The correct choice is the second one:
- 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.
Brief note: firms maximize profit by producing up to the quantity where marginal revenue equals marginal cost (MR = MC). Mathematically, MC = dC/dQ and MR = dR/dQ.
- 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.
Brief note: firms maximize profit by producing up to the quantity where marginal revenue equals marginal cost (MR = MC). Mathematically, MC = dC/dQ and MR = dR/dQ.
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