It is believed that marginal revenue must equal marginal costs in order for economic profit to exist. If average revenues fall, marginal revenue is less than average revenues. In other words, when ...

The shutdown point is the point at which a company's variable (marginal) costs equal its variable (marginal) revenue, or when the marginal profit becomes negative. At what output is MC at the minimum?

companies should produce additional units until the marginal cost of production equals marginal revenue, at which point revenue is maximized. How to Calculate Total Manufacturing Cost? There are ...