Marginal profit equals the difference between marginal revenue and marginal cost.

Question

Quizplus · Accepted Answer

This statement is correct according to the basic principles of microeconomics. Marginal profit is the additional profit a firm earns by producing one more unit of output. It is calculated as the difference between marginal revenue, which is the additional revenue earned by selling one more unit, and marginal cost, which is the additional cost incurred by producing one more unit.

Marginal Profit Equals the Difference Between Marginal Revenue and Marginal