contestada

a firm should continue to hire a resource as long as the resource's marginal revenue product exceed the resource's marginal resource cost.

Respuesta :

Marginal revenue (increase in total revenue) is the price a company receives for additional units sold, minus the revenue lost due to markdowns on all other units sold before the markdown.

A company's income is the money it earns from the sale of its products. Revenue is equal to the number of units a company sells multiplied by the price at which each unit is sold: Revenue = Price x Quantity. For example, consider a music store that sells CDs. Suppose a company sells 25,000 CDs in a month, at $15 each.

Marginal Profit: Marginal profit is the amount of money that can be earned by producing and selling one more unit of production. Average Profit: Average Profit is the average amount earned per unit of production. Gross profit: Gross profit is the total amount of money earned by selling all the products produced.

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