examples of marginal cost and revenue
Below is a table of a hypothetical firm, which has a choice of selling quantities ranging from 0 to 130. The product's price is constant at $2. Therefore, average and marginal revenue are $2, as well. For example, at a quantity of 110 units, the total revenue is 110 times $2, or $220.The marginal revenue is the change in total revenue divided by the change in quantity.elow is a table of a hypothetical firm, which has a choice of selling quantities ranging from 0 to 130. The product's price is constant at $2. Therefore, average and marginal revenue are $2, as well. For example, at a quantity of 110 units, the total revenue is 110 times $2, or $220.
Example: For example, the total cost of producing one pen is $5 and the total cost of producing two pens is $9, then the marginal cost of expanding output by one unit is $4 only (9 - 5 = 4).The marginal cost of the second unit is the difference between the total cost of the second unit and total cost of the first unit.The marginal cost of the 5th unit is $5. It is the difference between the total cost of the 6th unit and the total cost of the, 5th unit and so forth.Marginal Cost is governed only by variable cost which changes with changes in output. Marginal cost which is really an incremental cost can be expressed in symbols.he marginal cost of the 5th unit is $5. It is the difference between the total cost of the 6th unit and the total cost of the, 5th unit and so forth. Marginal Cost is governed only by variable cost which changes with changes in output. Marginal cost which is really an incremental cost can be expressed in symbols.