The marginal revenue of capital refers to the additional revenue generated from employing one more unit of capital in the production process. It is an important concept in economics, as it helps firms determine the optimal level of capital investment. If the marginal revenue of capital exceeds the cost of using that capital, firms are incentivized to invest further; if it falls below that cost, they may reduce their capital investment. Ultimately, it helps in assessing the efficiency and profitability of capital utilization.
Demand.
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
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 revenue/margina utility return from capital represents the benefit of capital. When determining the optimal amount of capital, we must take into account the point when marginal benefit = marginal cost. This optimises profit/utility.
Demand.
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
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.
To determine the marginal revenue formula for a business, you can calculate the change in total revenue when one additional unit of a product is sold. The formula for marginal revenue is MR TR/Q, where MR is marginal revenue, TR is the change in total revenue, and Q is the change in quantity sold. By analyzing the revenue data and applying this formula, businesses can determine their marginal revenue.
A monopolist will set production at a level where marginal cost is equal to marginal revenue.
marginal cost of production
what is average revenue?