Economics
5th Edition
ISBN: 9781319066604
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
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Question
Chapter 13, Problem 11P
To determine
Concept Introduction:
Total Revenue: This refers to the total amount received from the customers from the sale of goods or services. The formula to calculate the total revenue is:
Marginal Cost: This refers to the change in cost which is incurred when an additional unit of any good or service is produced. It shall be calculated as follows:
Marginal Revenue: This refers to the additional revenue that a producer or supplier receives when she/he produces or supplies an extra unit.
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