In your own words, explain what is happening in this chart. Please use the terms Marginal Cost and Marginal Revenue in your answer.

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01-05-2021
Social Studies

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In your own words, explain what is happening in this chart. Please use the terms Marginal Cost and Marginal Revenue in your answer.

Sagot :

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Ahsan57900idn Ahsan57900idn · Answer 1 · 2021-05-06T22:40:45-04:00

Answer:

marginal revenue is decreasing and marginal cost is remain the same.

Explanation:

The marginal revenue is decreasing with the increasing number of hours of operation whereas the marginal cost remain the same. The cost of producing an additional unit will increased the revenue generated. When marginal revenue falls below marginal cost, the firms adopt the cost-benefit principle and stop further production of the product, because no further benefits are gained from additional production of that commodities.

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