Asked by Maegan Cantu on Jul 02, 2024
Marginal cost typically ________ and marginal revenue typically _________ with increasing output.
A) rises;falls
B) falls;rises
C) rises;rises
D) falls;falls
Marginal Cost
Marginal cost is the cost of producing one additional unit of a product or service, a crucial concept in economics for determining optimal production levels and pricing strategies.
Marginal Revenue
The surplus earnings acquired through the sale of an extra product or service unit.
Increasing Output
The process of raising the quantity of goods or services produced by a company or economy, often aiming for higher efficiency and profitability.
- Evaluate the role of marginal costs and revenues in determining production decision-making.
Learning Objectives
- Evaluate the role of marginal costs and revenues in determining production decision-making.
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