2.7 The Concept Of The Margin Flashcards
1
Q
What is marginal revenue ?
A
the additional revenue received from the sale of an additional unit of output
2
Q
what is marginal cost ?
A
the additional cost of producing an additional unit of output
3
Q
what is marginal private benefit (MPB)?
A
the additional benefit from the consumption of an additional unit of a G/S
4
Q
what is marginal private costs(MPC)
A
the additional cost of producing an additional unit of output
5
Q
what is marginal social benefit (MSB) ?
A
the additional benefit for society from the consumption of an additional unit of a good/service.
6
Q
what is marginal social cost (MSC) ?
A
the additional costs to society from the production of an additional unit of a G/S
