Respuesta :
The additional money that results from raising the amount is known as the marginal revenue. The additional revenue "at the margin" is another name for this. Profit is therefore maximized when marginal cost equals marginal income, or when marginal profit is equal to zero.
It's useful to comprehend how these two numbers interact with one another to calculate marginal revenue: When marginal cost and marginal revenue are equal, your company's production level is at its peak. At this point, efficiency is at its highest point and profits are at their highest point.
To increase its level of production and maximize its profit, the company should do so when marginal revenue and marginal cost are equal. In a market where there is competition, a company's marginal revenue is the extra money it makes if it increases production by one unit.
There is no economic gain in equilibrium because marginal revenue and costs are equal on a marginal basis. The link between marginal revenue and the marginal cost of production enables rational businesses to pinpoint the point at which they can generate the maximum amount of profit. Here, achieving marginal revenue equality over marginal cost is the desired outcome. According to economic theory, a company should increase output until marginal cost and marginal income are equal.
To learn more about marginal revenue:
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