Examlex
Listed below are 5 terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the most correct term.
Marginal Cost
The cost of producing one additional unit of a good or service.
Marginal Revenue
The additional income that an organization receives from selling one more unit of a product or service.
Economic Profit
The difference between total revenue and total costs, including both explicit and implicit costs, representing the financial gain exceeding the opportunity costs of resources.
MR = MC
An economic principle stating that the maximum profit occurs where marginal revenue equals marginal cost, guiding firms on the optimal level of output.
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