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What term describes the cost of producing one more unit of output?
Wiki User
∙ 13y ago
Where production is already under way, the term "marginal" is applied to the cost of additional products.
Wiki User
∙ 13y ago
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What is a business firm's marginal cost?
Marginal cost, which is the cost of producing one more unit of output, helps determine the level at which profits will be maximized.
What is increases productivity lead to?
It means an increase in the ability to produce more at a quicker rate.
Is the increase in efficiency gained by producing more output without using more inputs.?
savings
An increasing in efficiency gained by producing more output without using more inputs is called what?
That term is known as economic efficiency
How do you find marginal average cost?
Marginal cost comes from the costs of producing just one more of something.
What is a business firm's marginal cost?
Marginal cost, which is the cost of producing one more unit of output, helps determine the level at which profits will be maximized.
While producing less then the competitive output decreases social welfare. Can it be said about producing more than the competitive output?
Yes
What is increases productivity lead to?
It means an increase in the ability to produce more at a quicker rate.
What is meant by marginal cost?
Marginal product is the result of an additional output of production. An example is adding an hour to an employeeâ??s work schedule to produce 100 more cookies. Marginal cost is the cost associated with producing an additional output. An example is paying an employee the overtime rate per hour for producing 100 more cookies.
Is the increase in efficiency gained by producing more output without using more inputs.?
savings
Is the increase in efficiency gained by producing more output without using more inputs?
savings
What is an example of technological progress?
producing more output by revamping operation methods of the assembly line
Application of calculus to business decision process?
Microeconomics, which determines much of the business decision process, looks to the margin for much of its data. What is the marginal cost of producing one more piece of output? What is the marginal cost of hiring one more employee? What is the marginal benefit of opening another store? In other words, the business decision process is not concerned with the total cost of producing all its units as much as producing just one more. In this sense, the margin is the derivative of the total cost. When the marginal benefit of something is greater than the marginal cost, the action will be followed. If the marginal cost is greater, it will not be. A company will produce more output until marginal benefit is equal to marginal cost. To maximize profits, the decisions of a company need to be made based upon this knowledge and some very complex calculus to find just want marginal costs and benefits of any given action are.
An increasing in efficiency gained by producing more output without using more inputs is called what?
That term is known as economic efficiency
What does incremental cost means?
the increase or decrease in cost as a result of one more or one less unit of output.
What is the biggest challenge of nuclear fusion?
Getting it to work in a controllable continuous way and producing more power output than the power input.
Why does Net benefits increase when marginal benefits exceed marginal cost?
When Marginal benefit (MB) exceed Marginal cost (MC). The society values the additional unit of product more than the cost of producing it. In this case, Net benefit will increase as long as firms produces more until the point where MB = MC. (Because every additional output will add more to MB than to MC, Net benefit will rise)
