If marginal revenue equals marginal cost:
No profit is being made
Total revenue equals total cost
Profit are maximized
Producing another unit could increase profit
_______ is the addition made to the total revenue by selling one more unit of a commodity.
Average revenue
Total revenue
Marginal Revenue
Total cost
The amount of money which the firm recovers by the sale of its output in the market is known as its
Cost
Revenue
Profit
Economic profit is the difference between total revenue and
Average cost
Marginal cost
Economic costs
Production cost
Total cost is the sum of
Total fixed cost and total variable cost
Total fixed cost and average cost
Marginal cost and average cost
Marginal cost and total fixed cost
Price equals:
Total revenue - quantity
Total revenue / quantity sold
Total quantity sold × quantity sold
Total revenue / total cost
Economic cost includes explicit cost and
Implicit cost
Social cost
Fixed cost
Money cost.
If the marginal revenue is less than the marginal cost then to profit maximize a firm should
Reduce output
Increase output
Leave output where it is
Increase costs
Money cost is also called
Nominal cost
Real cost
The average variable cost curve:
Is derived from the average fixed cost
Converges with the average cost as output increases
Equals the total costs divided by the output
Equals revenue minus profits
