If MR is greater than MC, the firm should increase their production. The ideal amount of production is determined by allowing the marginal cost to equal the marginal revenue.
the optimal level of advertising expenditure for the firm is determined where the marginal revenue increase in costs of advertising are equal to the marginal increase in revenue
I'm thinking that marginal revenue product is the marginal revenue on one product, and marginal revenue is the marginal revenue on the whole firm sales... I'm wondering the same thing but the above response is incorrect. both terms imply values on one item as indicated by the "marginal"
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
price eqilibrium in market is determined by demand and supply of the production.
Marginal revenue is the change in total revenue over the change in output or productivity.
A company maximizes profits when marginal revenue equals marginal costs.
Explain why the marginal revenue(MR) is always less than the average revenue (AR)?
Marginal Cost = Marginal Revenue, or the derivative of the Total Revenue, which is price x quantity.
A monopolist will set production at a level where marginal cost is equal to marginal revenue.
Because in Pure Competition, Demand equals Price, and Price equals Marginal Revenue;hence, Demand equals Marginal revenue.
what is average revenue?