Question

What is the correct answer In economic terms, a practical approach to maximizing profits requires an examination of how changes in production affect and

a.total revenue; total cost
b.marginal revenue; marginal cost
c.total revenue; marginal cost
d.marginal revenue; total cost

Answer 1

The correct answer is B

Step-by-step explanation:

Marginal Revenue is the revenue or the additional income which is generated from the sale of one more unit of the good or service. Whereas the Marginal cost is the variable cost which comprise of material and the labor costs and in addition to the estimated portion of the fixed costs.

It is approach where profits maximizing required for the examination of how the variation in production affect the marginal revenue and the marginal costs.