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...
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from Financial Accounting: Help and ReviewChapter 2 / Lesson 13
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