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

B

Step-by-step explanation:

Answer 2

Answer: 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.

Explanation: The money or expenses incurred in the production of a good or service is called cost. Marginal cost simply refers to the cost incurred in producing one more unit of a product or service. Revenue on the other hand refers to the money earned from selling a company's product. Therefore, marginal revenue refers to the amount a producer makes or earns from selling one more unit of a product.