Question

Comparing marginal revenue to marginal cost

(i) reveals the contribution of the last unit of production to total profit.
(ii) is helpful in making profit-maximizing production decisions.
(iii) tells a firm whether its fixed costs are too high.

Answer 1

(i) reveals the contribution of the last unit of production to total profit

and

(ii) is helpful in making profit-maximizing production decisions.

Step-by-step explanation:

As MR and MC can tell u what the last output contributed to the profit. change in profit = MR-MC. So we can gain insight on the profit and firm can then according to this make decision on how much to produce i.e. level where MR = MC.