Given that P=R-C where P is profit, R revenue and C cost, it follows that marginal profit dP/dQ = dR/dQ-dC/dQ where P,R and C are all functions of the output Q. Maximizing profit means setting dP/dQ = 0. Then dR/dQ = dC/dq where dR/dQ and dC/dq are marginal revenue and marginal cost respectively.
marginal revenue always lies behind the demand curve,and when demand increases marginal revenue also increases.demand curve is used to determine price of a commodity.
marginal revenue is negative where demand is inelastic
Explain why the marginal revenue(MR) is always less than the average revenue (AR)?
Total average pertains to annual revenue. While marginal revenue is equivalent to quarterly profits. The relationship between the two is only that one is the dividend of the other.
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"
marginal revenue always lies behind the demand curve,and when demand increases marginal revenue also increases.demand curve is used to determine price of a commodity.
marginal revenue is negative where demand is inelastic
Explain why the marginal revenue(MR) is always less than the average revenue (AR)?
Total average pertains to annual revenue. While marginal revenue is equivalent to quarterly profits. The relationship between the two is only that one is the dividend of the other.
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"
In economics, marginal profit is the difference between the marginal revenue and the marginal cost of producing an additional unit of output.
price = marginal revenue. marginal revenue > average revenue. price > marginal cost. total revenue > marginal co
moarginal product of labor
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.
Between them exist a simple line of difference, a monopolist can sale more with less money CHACHA!
Marginal Cost = Marginal Revenue, or the derivative of the Total Revenue, which is price x quantity.