Marginal terms in production

unit

Marginal cost - the additional costs while increasing output by one additional unit of output

If the unit price remain unchanged, then marginal revenue is simply the price per unit

result of the use of one additional unit of variable input factor of production

Marginal product in the monetary form - additional income resulting from using of one additional unit of variable input factor of production

hour (МРL) is equal to 50 units and the products are sold at a price of $ 0.5 per unit (МRQ):

Marginal product in the monetary form : MRPL = 0,5$ х 50 = 25$

=> each additional hour of labor brings 25$ income

If additional costs for labor are less than 25$ per hour, then the firm can earn additional income and additional profit

profit maximization: MRPX = PX

the marginal product in terms of money numerically will be greater than or equal to the price of labour

maximum when marginal cost equals marginal revenue
MCQ = ∆TC / ∆Q = (Px x ∆X) / ∆Q = Px (∆X / ∆Q) = Px / MPx = MRQ

cash (MRQ and MPx) can be either variable or constant

If this company deals with the production, which is characterized by gently lowering demand curve,

in this case, marginal revenue is variable, decreasing with increasing output or increasing volume of sales

sets the price, than marginal revenue is constant

it could be permanent: the law of diminishing returns does not apply to some factors of production

MPx

wheel, allows to obtain the marginal product in the form of the car. This marginal product will never change

also be variable in the sense

that it can and will change over time

However, at any given point in time, it will have a certain value that will determine the optimal level of output

Рх

MRPX = PX

of money represents the change in total revenue per additional unit of input factors of production