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What should a monopoly do if marginal revenue exceeds marginal cost?
increase output
Define diminishing marginal product of capital?
Diminishing marginal product of capital is an economic principle that refers to the concept that when the input is increased and the other inputs are kept at the same level than it may initially increase output. However, if the inputs continue to increase with no other changes there may be limited effect or eventually negative effect on the output.
Total output may continue to rise even though the marginal physical product is declining?
true
If you have Marginal Cost and Marginal Damages how do you find the optimal level of output?
The optimal level of output is where marginal costs = marginal damages.
Why does marginal cost tend to increase with output?
It is because of law of dimnishing marginal utility,when the ouput inreases,it also starts increasng as marginal product starts declining after the optimum utilisation of resources.
What should a monopoly do if marginal revenue exceeds marginal cost?
increase output
When a firm's marginal revenues are higher than its marginal cost?
Marginal cost is
Define diminishing marginal product of capital?
Diminishing marginal product of capital is an economic principle that refers to the concept that when the input is increased and the other inputs are kept at the same level than it may initially increase output. However, if the inputs continue to increase with no other changes there may be limited effect or eventually negative effect on the output.
A perfectly competative firms marginal cost exceeds its marginal revenue at its current output To increase its profit the firm will?
To increase profit the firm will decrease output to a point where MC=MR. This is the Profit Maximisation point
Explain the producer's equilibrium?
Producer's equilibrium occurs when a producer maximizes profit by producing at a point where marginal cost equals marginal revenue. This leads to the most efficient allocation of resources and output level for the producer in a given market. It is a key concept in microeconomics that helps producers make production decisions.
Total output may continue to rise even though the marginal physical product is declining?
true
If you have Marginal Cost and Marginal Damages how do you find the optimal level of output?
The optimal level of output is where marginal costs = marginal damages.
Why does marginal cost tend to increase with output?
It is because of law of dimnishing marginal utility,when the ouput inreases,it also starts increasng as marginal product starts declining after the optimum utilisation of resources.
The increase in output created by the addition of one more unit of input is called?
marginal product of labor (:
How marginal revenue and marginal cost can help set the most profitable output level?
A way to find the best level of output is to find the output level where marginal revenue is equal to marginal cost.
What would cause marginal costs to increase?
By definition marginal cost is the change in total costs for each additional item produced. Marginal costs will decrease when changes in inputs result in costs increasing at a decreasing rate. An example might be gains in productivity when hiring an additional unit of labor results in a more than proportional increase in output. Marginal costs would increase when an additional unit of an input results in a less than proportional increase in output (assuming input prices are constant).
When total output is maximized marginal output is?
Negative
