What is the difference between marginal cost and marginal revenue?
A. Marginal cost is the money a producer earns from selling one more unit, while marginal revenue is the money a producer pays for making one more unit.
B. Marginal cost is the money a producer pays for making one more unit, while marginal revenue is the money a producer earns from selling one more unit.
C. Marginal cost is the money a producer actually earns from selling more units, while marginal revenue is the money a producer might earn from one more unit.
D. Marginal cost is the money a producer might earn from one more unit sold, while marginal revenue is the money a producer will earn from one more unit.

Respuesta :

The answer is B Marginal cost is the money a producer pays for making one more unit, while marginal revenue is the money a producer earns from selling one more unit.

The option B is true as it gives the real definition of marginal cost and marginal revenue.

What is the definition of marginal cost and marginal revenue?

Marginal cost is the extra expense a business incurs when producing one additional product or service. While, the Marginal revenue is the incremental increase in revenue that a business experiences after producing one more product or service.

Hence, option B tells the correct definition of marginal cost and marginal revenue.

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