what is marginal cost and marginal revenue?
Answers
Marginal costs are variable costs consisting of labor and material costs, plus an estimated portion of fixed costs (such as administration overheads and selling expenses).
Answer:
Marginal cost - The increase or decrease in the total cost of a production run for making one additional unit of an item.
Marginal costs are variable costs consisting of labor and material costs, plus an estimated portion of fixed costs (such as administration overheads and selling expenses).
Marginal revenue
In microeconomics, marginal revenue is the additional total revenue that will be generated by increasing product sales by one unit. In a perfectly competitive market, the additional revenue generated by selling an additional unit of a good is equal to the price the firm is able to charge the buyer of the good.