What is the marginal cost,marginal revenue and marginal profit?
Answers
Production Decisions in Perfect Competition | Boundless ... Marginal cost is the increase in total cost from producing one additional unit. The marginal revenue is the increase in revenue from the sale of one additional unit. One way to determine how to generate the largest profit is to use the marginal revenue-marginal cost perspective.
Answer:
Marginal cost
In economics, marginal cost is the change in the total cost that arises when the quantity produced is incremented by one unit; that is, it is the cost of producing one more unit of a good.
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.
Marginal profit
In microeconomics, marginal profit is the increment to profit resulting from a unit or infinitessimal increment to the quantity of a product produced.