How Can I Solve Problems Related To Marginal Cost And Revenue?
These two are one of the most important concepts in Micro economics. Marginal cost is the cost which is incurred inclemently if an activity is taken up while marginal revenue is the revenue one gets after selling additional unit of good or service. For a perfect market , equilibrium is achieved where marginal revenue meets marginal cost. It is the point where a person earns normal profits under Perfect competition. Best option to solve the problems on marginal cost and revenue is to construct tables with different columns outlining the total revenue, total cost, marginal cost, marginal revenue, total number of goods etc. Now place Total number of goods in the first column and than total cost, marginal cost, total revenue, marginal revenue. By simple arithmetic you can find out the marginal revenue and marginal cost functions and can calculate them very easily. Another good way to find out the solutions for marginal cost and marginal revenue questions is to plot them against graphs. Gra
