Egt1 Task 1 Questions And Answers
EGT1 TASK 1
309.1.1-05, 06
A. Marginal revenue indicates how much extra revenue a company receives for selling an extra unit of output. 1. Marginal Revenue is the change in total revenue resulting from a change in the quantity of output sold. Expressed as: Marginal Revenue = change in total revenue/change quantity.
B. Marginal cost is the overall change in a firms total cost of production resulting from a change in production by one unit. 1. Marginal cost and total cost are related in terms of the cost of production for manufacturing companies or service providers. Fixed costs and marginal variation in cost are both considered when determining the total cost, so total costs encompass marginal costs.
C. Profit is
309.1.1-05, 06
A. Marginal revenue indicates how much extra revenue a company receives for selling an extra unit of output. 1. Marginal Revenue is the change in total revenue resulting from a change in the quantity of output sold. Expressed as: Marginal Revenue = change in total revenue/change quantity.
B. Marginal cost is the overall change in a firms total cost of production resulting from a change in production by one unit. 1. Marginal cost and total cost are related in terms of the cost of production for manufacturing companies or service providers. Fixed costs and marginal variation in cost are both considered when determining the total cost, so total costs encompass marginal costs.
C. Profit is