Search
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

# Marginal Analysis - Essay Example

Summary
A. The response provides an incomplete explanation of the relationship of marginal revenue and total revenue. Please revise with a more specific explanation. Please revise to include a clear and direct relationship between marginal revenue and total revenue.
F.1. The essay…

## Extract of sampleMarginal Analysis

Download file to see previous pages... Please revise with a more specific explanation. Please revise to include a clear and direct relationship between marginal revenue and total revenue.
B.1. The submission does not provide an adequate explanation of the relationship between marginal cost and total cost. Please revise to include a clear and direct relationship between marginal cost and total cost.
F.1. The essay does not clearly explain what a firm would do with respect to output decisions if marginal revenue is less than marginal cost. Please revise to address whether the firm should increase or decrease production.
Definition. Marginal revenue is defined as the additional revenue obtained from selling one more unit of the good that he produces (William Boyes and Melvin, Michael, 2002, p. 202-205). To better understand it, let us present it in the form of a graph.(see graph l)
We have here a demand graph showing the quantity of a certain item the consumers are willing to buy at a certain price. At price of \$10, people are willing to buy 100 pcs. Total revenue \$1000 It is blue area under the demand curve. People will not buy more if the price is increased, and in order to sell more, price must be dropped.
It is important to be aware of the demand curve to understand the marginal revenue because it will show how much the producer needs to lower the price in order to sell another item. Demand curve is the slope going down (D)
The relationship that exists between the two is the additional revenue that is given by producing another unit of production. It can further be related as the unit revenue the last item has sold , or how much is the contribution to revenue of the last item sold The causaL relationship that exist is for each item sold, marginal profit = marginal revenue – marginal cost. And if MR IS greater than MC at a certain point of output, then profit is positive; and the same relationship exists when MR is less than MC result is ...Download file to see next pagesRead More
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Micro and Macro Economics (marginal revenue; marginal cost; elasticity)
This paper aims to: explain what action a profit-maximizing firm takes if marginal revenue is less than marginal cost; define the following three terms (elasticity of Demand; cross-Price Elasticity; income Elasticity) explains the elasticity coefficient for each of three terms.
18 Pages(4500 words)Essay
Opportunity Cost of Going to College, Marginal Analysis

According to the study conducted all the students attending college do not have to earn for their expenses. Sometimes students are dependent on their parents who take the responsibility of paying for all of their son’s or daughter’s expenses. Attending college and pursuing a degree course also requires a student to study harder and appear for examinations.

11 Pages(2750 words)Essay
Managerial Economics - Production
The output can also be a service rather than a good. To be noted is that " production " refers to all of the activities involve in the production of goods and services, from borrowing to set up or expand production facilities, to hiring workers, purchasing raw materials, running quality control, cost accounting and so on, rather than referring merely to the physical transformation of inputs into outputs of goods and services.
4 Pages(1000 words)Essay
Unit 4 Scenario
For resolving this parking issue, City Council provided a lot of advice the implementation of which will take a long period of time. In order to solve the parking issue, one of the banks in the area recommended a solution. For car parking, the bank proposed to charge
2 Pages(500 words)Essay
Contrast and Compare Absorption Costing With Marginal Costing
Strict adherence to a particular costing method has been considered to be highly significant because costing methods that a business adopts
8 Pages(2000 words)Essay
Marginal Analysis and how it is used in the world of economics
The theory of economics helps us to make optimum decision. In this context, the marginal analysis is very important—it is used to help people optimally allocate their scarce and valuable resources in order to maximize the
5 Pages(1250 words)Essay
Marginal analysis
This curve shows us the number of units of a product that consumers are willing to purchase at a certain price. The number of units is multiplied by the price to get total revenue. Total revenue is important in determining
2 Pages(500 words)Essay
Marginal analysis
This paper will discuss two peer reviewed journal articles on marginal analysis. In this article, Donald Rudow uses marginal analysis to evaluate Gushan Environmental Energy Ltd’s (GU) diversification into recycled copper business, away from biodiesel fuel segment which
3 Pages(750 words)Essay
BSc Accounting Programme -- Management Accounting -- Absorption vs Marginal Costing
According to Hilton, Maher & Selto (2008, p. 5), “Cost management is a philosophy, an attitude, and a set of techniques to
9 Pages(2250 words)Essay
Marginal Analysis
2. In terms of marginal revenue and marginal cost, the profit maximizing quantity is the one where the marginal revenue equals the marginal cost. When the company goes on increasing the quantity, the marginal revenue keeps on increasing as
1 Pages(250 words)Essay
Let us find you another Essay on topic Marginal Analysis for FREE!
+16312120006