Marginal analysis involves examining
A) what happens to a firm's costs and revenues when production is changed by one unit.
B) what happens to a firm's revenues when one more product is sold.
C) what happens to a firm's costs when one more unit is produced.
D) the difference between marginal revenue and total revenue.
E) the difference between marginal cost and total cost.

Question

Quizplus · Accepted Answer

Marginal analysis focuses on the impact of producing one more unit on a firm's costs and revenues. It examines the change in total cost and total revenue resulting from producing one additional unit.

Marginal Analysis Involves Examining