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The rule of total cost states that a firm should continue to produce additional units of a good or service as long as the marginal cost (the cost of producing one more unit) is less than or equal to the marginal revenue (the revenue generated from selling that additional unit). When marginal costs exceed marginal revenue, it becomes unprofitable to produce more, and the firm should reduce output to maximize profits. This principle helps businesses determine the optimal level of production for maximizing profitability.
What else can I help you with?
Which of the following is a critical rule for determining whether something is a public good?
The total benefits to society are greater tham the total cost.
If you have total cost and total benefit how do you get marginal cost and marginal benefit?
Marginal cost is total cost/quantity Marginal benefit is total benefit/quantity
Is selling price and total variable cost the same?
Selling price = Total Cost (Total Variable cost + Total fixed cost) + profit margin
Is the marginal cost the derivative of the total cost?
Yes, the marginal cost is the derivative of the total cost.
What is the relationship between marginal cost and total cost in the production process?
Marginal cost is the additional cost incurred by producing one more unit of a good or service. It is calculated by dividing the change in total cost by the change in quantity produced. Total cost, on the other hand, is the sum of all costs incurred in producing a certain quantity of goods or services. The relationship between marginal cost and total cost is that marginal cost affects the total cost by showing how much the cost increases when producing additional units. When marginal cost is less than average total cost, total cost decreases. When marginal cost is greater than average total cost, total cost increases.
Which of the following is a critical rule for determining whether something is a public good?
The total benefits to society are greater tham the total cost.
What is the average operating cost for a private jet?
What might be a rule of thumb for the cost of operating a private jet? Say a Gulfstream G550? Total Variable Cost for the G550: $2,153
Is total cost different from overhead cost?
Overhead cost is part of total cost and not different from total cost as formula is as follows: Total cost = material cost + labor cost + overhead cost
Is shiping cost a fixed cost?
The simple rule is that if every order requires shipping fee then it is variable cost because as many as the number of orders variable cost will vary as well, but if total shipping cost remain as fixed amount no matter how many orders are shipped the shipping cost is classified as fixed cost.
Does total cost equal the fixed cost plus the vriable cost divides by volume?
Formula for Total Cost: Fixed Cost + Variable Cost + Semi-Variable Cost if there is no semi-variable cost then fixed cost + variable cost is a total cost. if we devide the total cost with volume as well then it will be cost per unit not total cost
If you have total cost and total benefit how do you get marginal cost and marginal benefit?
Marginal cost is total cost/quantity Marginal benefit is total benefit/quantity
Is selling price and total variable cost the same?
Selling price = Total Cost (Total Variable cost + Total fixed cost) + profit margin
The total cost tc of c ounces of cinnamon if each ounce costs c79 cents find the function rule for each situation?
Dees nuts
What does the vertical distance between the fixed Cost and the total cost curve represent?
total variable cost
How do you get the total cost?
Total cost is fixed cost + variable cost (TC=FC + VC)
Is the marginal cost the derivative of the total cost?
Yes, the marginal cost is the derivative of the total cost.
How do you calculate Total Cost without Total variable cost?
To calculate the Total Cost without Total variable cost, one should estimate for the variables or substitute for the variables with a variable such as X or Y and then solve for the approximate total cost.
