Question

What is the difference between marginal cost and marginal revenue?

Answer 1

The answer is B Marginal cost is the money a producer pays for making one more unit, while marginal revenue is the money a producer earns from selling one more unit.

Answer 2

The total cost of producing 101 units is $204. The average cost of producing 100 units is $2, or $200/100; however, the marginal cost for producing the 101st unit is $4, or ($204 - $200)/(101-100). The marginal revenue measures the change in the revenue that arises when one additional unit of a product is sold.