Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
It is given that the value of marginal Revenue is $110 and tha marginal cost is $66
Calculate the value of marginal profit
Expert Solution
Conceptual knowledge
Marginal revenue is the addition to total revenue when one one more output unit gets sold. Marginal cost is the addition to the total cost incurred when one more output unit gets produced. Marginal profit is the addition to total profit earned by selling one more output unit.
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