What is the difference between marginal cost and marginal revenue?

A. Marginal cost is the money a producer earns from selling one more unit, while marginal revenue is the money a producer pays for making one more unit.

B. Marginal cost is the money a producer pays for making one more unit, while marginal revenue is the money a producer earns from selling one more unit.

C. Marginal cost is the money a producer actually earns from selling more units, while marginal revenue is the money a producer might earn from one more unit.

D. Marginal cost is the money a producer might earn from one more unit sold, while marginal revenue is the money a producer will earn from one more unit.

Question

Social Studies

Miguel Williams

16 April, 02:50

What is the difference between marginal cost and marginal revenue?

A. Marginal cost is the money a producer earns from selling one more unit, while marginal revenue is the money a producer pays for making one more unit.

B. Marginal cost is the money a producer pays for making one more unit, while marginal revenue is the money a producer earns from selling one more unit.

C. Marginal cost is the money a producer actually earns from selling more units, while marginal revenue is the money a producer might earn from one more unit.

D. Marginal cost is the money a producer might earn from one more unit sold, while marginal revenue is the money a producer will earn from one more unit.

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Answers (1)

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Dahlia Cox · Answer 1

The total cost of producing 101 units is $204. The average cost of producing 100 units is $2, or $200/100; however, the marginal cost for producing the 101st unit is $4, or ($204 - $200) / (101-100). The marginal revenue measures the change in the revenue that arises when one additional unit of a product is sold.