With an increase in production, marginal revenues tend to decline for a given amount of consumer demand. It is believed that marginal revenue must equal marginal costs in order for economic profit to ...

Marginal revenue and marginal cost are essential calculations that help companies analyze and maximize their profits. Taken together, marginal revenue and marginal cost are used to determine how many ...

Marginal cost helps predict profit increases as companies grow. Companies maximize profit by balancing marginal costs and revenues. Different business models influence the marginal costs' impact on ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

What Is a Shutdown Point? A shutdown point is a level of operations at which a company experiences no benefit for continuing operations and therefore decides to shut down temporarily—or in some cases ...

This paper studies a joint pricing and product quality decision problem in a distribution channel, in which a manufacturer sells a product through a retailer. The manufacturer jointly determines the ...