Maximum efficiency is achieved here But this point does not necessarily

correspond to maximum profits
In order to know the most profitable

more unit
Marginal cost - the additional costs while increasing output

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

a result of the use of one additional unit of

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

per hour (МРL) is equal to 50 units and the

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

for profit maximization: MRPX = PX
as long as

the profit is maximum when marginal cost equals marginal revenue
MCQ

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

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

itself sets the price, than marginal revenue is constant

returns
But it could be permanent: the law of diminishing returns

MPx

4 wheel, allows to obtain the marginal product in the

can also be variable in the sense
that it can and

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

Рх

MRPX = PX

form of money represents the change in total revenue per