Copyright

In economic terms a practical approach to maximizing profits requires an examination of how...

Question:

In economic terms a practical approach to maximizing profits requires an examination of how changes in production affect (.......) and (....) .

a. total revenue; total cost

b. total revenue; marginal cost

c. marginal revenue; marginal cost

d. marginal revenue; total cost

Marginal Revenue and Marginal Cost:

Marginal cost is the total incremental cost incurred on producing one extra unit and marginal revenue is total revenue earned by producing one extra unit. Marginal revenue is calculated by dividing change in total revenue by change in total quantity produced.

Answer and Explanation:

The correct answer is C.

Marginal revenue is the additional revenue that the company will generate by producing one extra unit and the marginal cost...

See full answer below.

Become a Study.com member to unlock this answer! Create your account

View this answer

Learn more about this topic:

Marginal Revenue: Definition & Equation

from Financial Accounting: Help and Review

Chapter 2 / Lesson 13
19K

Related to this Question

Explore our homework questions and answer library