diminishing marginal returns
A monopolist will set production at a level where marginal cost is equal to marginal revenue.
Its the level of production where marginal cost is equal to marginal revenue.
Marginal physical product is zero
equal to
The optimal level of output is where marginal costs = marginal damages.
diminishing marginal returns
The level at which marginal production goes up with new investment is generally referred to as the point of diminishing returns. Beyond this point, each additional unit of investment yields a smaller increase in output or productivity. This occurs as resources become more scarce or inefficiently allocated, resulting in a decrease in the marginal return on investment.
A monopolist will set production at a level where marginal cost is equal to marginal revenue.
How can capital durability eventually decrease the level of investment?
Its the level of production where marginal cost is equal to marginal revenue.
Marginal physical product is zero
equal to
The optimal level of output is where marginal costs = marginal damages.
Allocative efficiency is an output level where the price equals the marginal cost of production. This is because the price that consumers are willing to pay is equivalent to the marginal utility that they get. Therefore the optimal distribution is achieved when the marginal utility of the good equals the marginal cost.
When output is less than the efficient level, the amount consumers are willing to pay equals the cost of production. the cost of production is greater than the price consumers are willing to pay. the marginal cost of producing the good must be greater than the marginal benefit from the good.
A way to find the best level of output is to find the output level where marginal revenue is equal to marginal cost.
The most profitable output level is when marginal costs equals marginal revenue. When marginal revenue is larger than marginal cost, that means that more product can be produced for more profit.