Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
Sagot :
At that time, marginal cost is lower than marginal revenue.
Marginal cost:
- It also goes by the name incremental cost.
- A profit maximizing firm will produce a quantity where marginal cost = marginal revenue[tex](MC = MR)[/tex].
- If MC is greater than MR, then there is more cost than revenue for each additional unit of output, so it should decrease the output till MC = MR.
- On the other hand, if MC is less than MR, there is scope for more output; it can produce more quantity until [tex]MR = MC[/tex].
- In order to determine profitability at various levels of production and sale, marginal costing is useful in profit planning. It is helpful in making decisions on selling price fixation, export decisions, and make or buy decisions. The marginal costing methods of break even analysis and [tex]P/V[/tex] ratio are both effective.
Learn about more marginal cost here brainly.com/question/3200587
#SPJ1
Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
