For example, if you work overtime, you will be given 20 yuan every 1 hour.
1. Overtime 1 hour, 30 yuan will be awarded. Then 1 hour is the marginal cost and 30 yuan is the marginal revenue. At this time, the marginal cost; marginal income
The longer the overtime, the lower the reward, which is called diminishing marginal income. If the time is longer, the reward is higher, which is called increasing marginal revenue.
The marginal revenue of extended data refers to the revenue increased for every unit product sold, that is, the revenue obtained by selling the last unit product. It can be positive or negative. Marginal income is an important concept in enterprise analysis. A necessary condition for profit maximization is that the marginal revenue is equal to the marginal cost, and at this time the marginal profit is equal to zero, thus realizing profit maximization.
Under the condition of perfect competition, the output change of any manufacturer will not affect the price level, and the demand elasticity is infinite for a single manufacturer. Total income increases proportionally with the increase of sales volume, and marginal income is equal to average income and price.
In economics and finance, marginal cost refers to the increment of total cost per unit of newly produced products (or purchased products). This concept shows that the cost per unit product is related to the total product.
For example, the cost of producing only one car is extremely huge, while the cost of producing 10 1 is much lower, and the cost of producing 10000 is even lower (this is because of the benefits brought by economies of scale). But considering the opportunity cost, with the increase of output, the opportunity cost may also increase. Again, the materials used in the production of a new car may be more useful, so we should try to produce as many cars as possible with the least materials and improve the marginal income. Marginal cost is abbreviated as MC or MPC.
References:
Baidu Encyclopedia marginal cost Baidu Encyclopedia marginal revenue