For a firm, marginal revenue minus marginal cost is equal to

Name: For a firm, marginal revenue minus marginal cost is equal to
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Quizplus · Accepted Answer

Marginal revenue minus marginal cost equals the change in profit, not the total profit, average total cost, or change in average revenue. This is because the difference between the additional revenue from selling one more unit and the additional cost of producing that unit reflects how profit changes with production adjustments.

For a Firm, Marginal Revenue Minus Marginal Cost Is Equal