01:220:102 Study Guide - Final Guide: Marginal Revenue, Marginal Cost, Opportunity Cost

• School: Rutgers University
• Department: Economic
• Course: 01:220:102
• Professor: M.Elgawly

Document Summary

An economic term that refers to an economy"s ability to produce goods and services at a. Gives a company the ability to sell goods and services at a lower price than its lower opportunity cost than that of trade partners. competitors and realize stronger sales margins . Refers to the ability of a party (an individual, or firm, or country) to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources. Total revenue (tr) = profit (p) * quantity (q) Profit is maximized when tr - tc is the greatest. Marginal revenue = change in total revenue / change in output change in total. The marginal revenue curve shows how marginal revenue varies as output varies. Economies of scale: to a reduction in the average cost of production. Economies of scale are benefits which occur when a firm increases output and this leads.