Marginal Revenue and Marginal Cost.

1.	Marginal Revenue and Marginal Cost.
Answer» Marginal Revenue: The change in total revenue with respect to a small change in demand of an item is called marginal revenue. x = Demand of an item, p = Price of an item, then total revenue R = x . p Marginal revenue is obtained by finding derivative of R with respect to x. Thus, marginal revenue = \(\frac{dR}{dx}\) Marginal Cost: The change in total cost with respect to a small change in production is called marginal cost. x = Production of an item, C = Production cost, then finding derivative of C with respect to x, marginal cost is obtained. Thus, marginal cost =\(\frac{ dC}{dx}\)

Answer»

Marginal Revenue: The change in total revenue with respect to a small change in demand of an item is called marginal revenue.

Thus, marginal revenue = \(\frac{dR}{dx}\)

Marginal Cost:

The change in total cost with respect to a small change in production is called marginal cost.
x = Production of an item, C = Production cost, then finding derivative of C with respect to x, marginal cost is obtained.

Thus, marginal cost =\(\frac{ dC}{dx}\)

Discussion

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