Using only marginal revenue and marginal cost, we can determine whether a firm is incurring a profit or a loss.

Name: Using only marginal revenue and marginal cost, we can determine whether a firm is incurring a profit or a loss.
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Question

Quizplus · Accepted Answer

Marginal revenue and marginal cost can help determine the optimal level of production for profit maximization, but they do not directly indicate whether a firm is incurring a profit or a loss. Total revenue and total cost need to be considered to determine profit or loss.

Using Only Marginal Revenue and Marginal Cost, We Can Determine