Marginal demand is used to predict how a change in unit price will affect demand for a product. Companies use this to determine if a price change will improve their bottom line or if the current price should stay in place. Understanding marginal demand requires knowledge of supply and demand for the product. Companies regularly […]
Marginal rate of technical substitution is a ratio indicating the amount by which one input can be substituted for another while keeping total output constant. It is best plotted visually on a graph and requires recalculation for each shift up or down the variable continuum. The objective is to find the point of production where […]
Marginal analysis identifies the relationship between additional benefits and costs of an activity to determine overall satisfaction. Consumers use this process to compare similar products and choose the one with the most desirable marginal benefit. Understanding changes in variables is key to the decision-making process. Marginal analysis is a process that seeks to identify the […]
Marginal revenue is the additional revenue earned by producing an extra unit of a product, and is related to marginal cost. Firms produce up to the point where marginal cost equals marginal revenue for maximum profit. Marginal revenue can be mathematically expressed and is studied in microeconomics. In a competitive market, marginal revenue declines as […]
The law of diminishing marginal returns states that output per employee or production unit will decrease after a certain point, which can be due to various factors. Hiring more employees may not always lead to efficiency gains without other investments, but in some cases, it may be necessary to fulfill orders. Diminishing marginal return is […]
Marginal placenta previa is a milder form of placenta previa where the placenta attaches lower than usual, near the cervix. It usually corrects itself as the pregnancy progresses, but bed rest and frequent doctor’s appointments are recommended, and vaginal bleeding is a common symptom. Complications include anemia, hemorrhage, and placental abruption. Risk factors include multiple […]
Marginal cost is the cost to produce an additional unit of product, while marginal product is the additional output generated by an additional unit of input. They are inversely related due to the law of diminishing returns, and when marginal product is at its highest, marginal cost is at its lowest. Marginal cost is calculated […]
Zero marginal cost refers to the production of an additional unit without an increase in total cost, often seen in nonrival goods like experiences or services. However, fixed costs and capacity limitations can affect marginal cost. The term is also used for goods with such a low marginal cost that it can be treated as […]
Erythema marginatum is a rash that can appear in some cases of rheumatic fever, particularly in children. It consists of circular patches that spread outward in a slightly raised red ring pattern. Treatment involves addressing the underlying rheumatic fever, and patients should seek medical evaluation if they notice the rash along with joint pain and […]
Marginal cost is the additional cost of producing one more unit of a product. In a competitive market, marginal cost and supply are the same, but in a less competitive market, they differ. As production increases, marginal cost initially declines, but eventually rises due to the law of diminishing returns. In a perfectly competitive market, […]
Marginal cost and total cost are related in determining the cost of production for firms. Fixed costs and marginal variance are considered when determining total cost, which includes marginal costs. The drug development industry is an example of an industry with low marginal costs but high average total costs. Marginal cost and total cost are […]
Marginal opportunity cost combines opportunity cost and marginal cost to measure the cost of producing extra units of goods. It can be applied to business decisions, such as increasing production, or personal decisions, such as buying multiple ice cream cones. Marginal opportunity cost is an expression used to describe the amalgamation of two economic terms: […]
The marginal cost of resources is the cost of purchasing one unit of resources used to produce a good. Companies must balance this cost with revenue to make a profit, and management must be aware of it. In less competitive markets, the MRC slope will rapidly increase up or down depending on demand. The marginal […]
Marginal rate of return helps investors and companies decide on the best course of action for maximum profit. It considers factors such as asset appreciation, benefits of selling, and overall impact on assets and liabilities. Marginal rate of return is a term used to identify the rate of return that results from adding a single […]
Marginal benefit and cost are key economic principles used by firms and consumers to maximize utility. For producers, marginal benefit is the market price of the good, while for consumers, it is the utility gained from consuming the last unit. Both groups aim to produce or consume until marginal benefit and cost are equal. An […]
Marginal cost is the cost of the last unit produced or consumed, taking into account the increase or decrease in production or consumption costs. It is important for producers and consumers, and can follow a curved line on a graph. Specialization and economies of scale can reduce costs, and stores often offer deals to encourage […]
Marginal private cost is the change in cost when production or consumption of a good or service is changed by a single unit. It helps individuals and businesses determine if making a change is the best approach and can aid in budget planning and resource management. Marginal private cost is a term used to identify […]
Marginal cost and revenue are used to determine the effects of producing one more unit. Firms aim for a production equilibrium where these are equal to maximize profit. Imbalances result in inefficiencies and economies of scale, and long-term calculations exclude fixed costs. Excessive production can lead to high costs without an increase in demand. Marginal […]
Marginal revenue is the additional revenue gained from producing one more unit of a product, and is related to marginal cost. Firms aim to produce up to the point where marginal cost equals marginal revenue. In a competitive market, marginal revenue decreases as output increases, but in a monopoly, the firm’s marginal revenue equals marginal […]
Marginal cost is the cost of producing one more unit of a good and can vary considerably. It tends to follow a curve, with a sweet spot where marginal costs match benefits. Marginal costs can rise as a firm exceeds resource limitations, and externalities like environmental impact can also be calculated. In some cases, higher […]
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