Question

What is the difference between marginal cost and marginal revenue?

a) Marginal cost is the money earned from selling one more unit of a good. Marginal revenue is the money paid for producing one more unit of a good.

b) Marginal cost is the money paid for producing one more unit of a good. Marginal revenue is the money earned from selling one more unit of a good.

c) Marginal cost is the money a producer might make from one more unit. Marginal revenue is the money a producer actually makes from one more unit.

d) Marginal cost is the money a producer actually makes from one more unit. Marginal revenue is the money a producer might make from one more unit.

Answer 1

The correct answer is: b) Marginal cost is the money paid for producing one more unit of a good. Marginal revenue is the money earned from selling one more unit of a good.