A. Total revenue is the amount of all sources of you can actually income. The total revenue consists of the total earnings over a period of period. The total earnings is determined by taking the price tag on the golf widget and multiplying it by quantity produced.
For Example , the limited value can be greater in the event the company produced one more widget and the total revenue improved. There would be no changes in earnings if the company decided to promote another widget and the marginal revenue was zero.
When establishing profit optimization using the total revenue/total cost approach, you should consider the value that revenue equals the between total revenue and total price.
If the cost is fixed, then your cost is regular regardless of the outcome level. Changing costs happen to be costs that change within the output, including labor. (price X quantity= total revenue)
The net income maximization is the difference between total revenue and total cost. The total revenue/total cost way depends on the thought of profit means total earnings minus total cost. This focuses on making the most of the difference to accomplish profit optimization. Profit maximization is best when little revenue and marginal cost cross. The length between total cost and total earnings are highest at this point.
M. Marginal revenue is the increase in revenue from a sale of just one additional widget. Marginal income is computed by separating the change in total earnings by the difference in output amount.
1 ) Marginal revenue in this scenario increases when ever one (1) widget comes. After the one (1) golf widget is sold as the quantity increases the marginal revenue decreases by ten (10).
C. Limited cost is based on taking the enhancements made on total expense and separating it by the change in variety.
1 . Marginal cost stays regular between golf widget when the output quantity is definitely one (1) and output quantity is two (2). The limited cost boosts by 10 then stays on constant if the output...