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    Price, marginal & total revenue, and marginal & total cost

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    What Information do you need to perform a marginal analysis to identify the profit-maximizing output, and how do you go about estimating it?

    © BrainMass Inc. brainmass.com October 9, 2019, 4:59 pm ad1c9bdddf
    https://brainmass.com/economics/cost-benefit-analysis/price-marginal-total-revenue-marginal-total-cost-45075

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    (Answer is included in brainmas.doc file attached below)

    Marginal analysis is simply the determination of optimal behavior by comparing benefits and costs that result from small (i.e., marginal) changes. Optimality requires that profit-maximizing output exists when the marginal benefit equals the marginal cost. Otherwise, a rise or fall could increase benefit more than cost. The marginal analysis has its mathematical ...

    Solution Summary

    Break down the process of marginal analysis is examined.

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