When marginal revenue is greater than marginal cost, each additional unit sold generates a positive proﬁt and adds to overall proﬁts.

Question

Quizplus · Accepted Answer

When marginal revenue is greater than marginal cost, it means that the revenue obtained from selling an additional unit is greater than the cost of producing that unit. This generates a positive profit, since the revenue exceeds the cost. Therefore, adding more units under these conditions will increase overall profits.

When Marginal Revenue Is Greater Than Marginal Cost, Each Additional