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DochEvi [55]
3 years ago
5

3.

Social Studies
2 answers:
xxTIMURxx [149]3 years ago
8 0

Answer:

marginal revenue

Explanation:

By setting production to a level where marginal cost and marginal revenue are balanced, the seller maximizes profits. Marginal revenue is the amount the seller earns from the last unit sold.

irinina [24]3 years ago
5 0

Answer:

marginal revenue

Explanation:

Marginal revenue is the additional profit that a company received when it decided to increase the production of their products by 1.

Marginal cost is the additional cost that the company has to pay when it decided to increase the production of their products bv 1.

When  Marginal revenue = Marginal Cost it means that the additional revenue that is obtained from producing more product will offset the additional cost that incurred from creating the product.

This situation tend to almost impossible to be achieved for most companies. Most companies have to compete with other companies who provide similar products which tend to lower their marginal revenue since they have to face the risk of having unsold products.

For monopoly, it is another story. Since they are the sole provider of a specific product in the market, they can almost sell all the products that they produce without having to worry about dealing with competitions that can steal their consumers.

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