What is the relationship between marginal cost and ... - Answers
Feb 13, 2025 · Marginal cost is the additional cost incurred by producing one more unit of a good or service, while opportunity cost is the value of the next best alternative forgone. In decision-making ...
Why does the marginal cost increase as production levels rise?
Feb 13, 2025 · The relationship between marginal cost and marginal revenue in determining optimal production levels is that a company should produce at a level where marginal cost equals marginal …
Why does the marginal cost first decrease and then increase?
Feb 13, 2025 · The marginal cost first decreases and then increases because of the law of diminishing returns. Initially, as more units are produced, the cost per unit decreases due to economies of scale.
What is the relationship between opportunity cost and marginal cost in ...
Feb 13, 2025 · The relationship between marginal cost and benefit in decision-making processes is that individuals or businesses should continue an activity as long as the marginal benefit exceeds the …
Why is there no supply curve for a monopoly? - Answers
Feb 13, 2025 · To identify and calculate deadweight loss on a monopoly graph, you can look for the area of the triangle between the demand curve, the supply curve, and the monopoly's marginal cost curve.
Why does a monopoly produce less and charge a higher price
Apr 28, 2022 · The marginal cost curve is lower than the demand curve, but the monopoly charges the price at the demand curve, which is a higher price and a lower quantity than a competitive market …
Is falling when marginal cost is below it and rising? - Answers
May 11, 2025 · When marginal cost is below average total cost, average total cost tends to fall, as each additional unit produced is less expensive than the average of previous units. Conversely, when …
How can one calculate marginal revenue from a table of data?
Feb 13, 2025 · To calculate marginal revenue from a table of data, you can find the change in total revenue when the quantity sold increases by one unit.
Why people will do less of an activity when the marginal ... - Answers
Aug 9, 2025 · People will do less of an activity when the marginal costs exceed the marginal benefits because it indicates that the additional costs of engaging in that activity outweigh the additional ...
Why is demand greater than marginal revenue for all ... - Answers
Feb 13, 2025 · What should the firm do if marginal revenue is greater than marginal cost? If a firm's marginal revenue is greater than its marginal cost, it should increase production to maximize profits.