the revenue value of the output from the last unit of input employed equals [...]
Answer
the cost of employing that input unit
If you want to change selection, open original toplevel document below and click on "Move attachment"
Parent (intermediate) annotation
Open it Aproach:
the revenue value of the output from the last unit of input employed equals the cost of employing that input unit
The third method compares the estimated cost of each unit of input to that input’s contribution with projected total revenue. If the increase in projected total revenue comi
Original toplevel document
3.1.4. Output Optimization and Maximization of Profit ore units because each successive unit adds more to total revenue than it does to total costs. If MC is greater than MR, total profit is decreased when additional units are produced. The point of profit maximization occurs where MR equals MC. <span>The third method compares the estimated cost of each unit of input to that input’s contribution with projected total revenue. If the increase in projected total revenue coming from the input unit exceeds its cost, a contribution to total profit is evident. In turn, this justifies further employment of that input. On the other hand, if the increase in projected total revenue does not cover the input unit’s cost, total profit is diminished. Profit maximization based on the employment of inputs occurs where the next input unit for each type of resource used no longer makes any contribution to total profit.
<span><body><html>
Summary
status
not learned
measured difficulty
37% [default]
last interval [days]
repetition number in this series
0
memorised on
scheduled repetition
scheduled repetition interval
last repetition or drill
Details
No repetitions
Discussion
Do you want to join discussion? Click here to log in or create user.