{"id":18088,"date":"2023-04-30T23:32:29","date_gmt":"2023-04-30T23:32:29","guid":{"rendered":"https:\/\/www.goodacademic.com\/blog\/questions\/q-3-is-zoe-using-marginal-cost-and-marginal-revenue-correctly-in-her-analysis-explain-the-errors-in-her-analysis-if-any-hint-think-about-kevin-blakes-questions\/"},"modified":"2023-04-30T23:32:29","modified_gmt":"2023-04-30T23:32:29","slug":"q-3-is-zoe-using-marginal-cost-and-marginal-revenue-correctly-in-her-analysis-explain-the-errors-in-her-analysis-if-any-hint-think-about-kevin-blakes-questions","status":"publish","type":"questions","link":"https:\/\/www.goodacademic.com\/blog\/questions\/q-3-is-zoe-using-marginal-cost-and-marginal-revenue-correctly-in-her-analysis-explain-the-errors-in-her-analysis-if-any-hint-think-about-kevin-blakes-questions\/","title":{"rendered":"Q. 3. Is Zoe using marginal cost and marginal revenue correctly in her analysis? Explain the errors in her analysis, if any. [Hint: Think about Kevin Blake\u2019s questions.]"},"content":{"rendered":"<p><span style=\"cursor: auto; color: inherit;\"><\/p>\n<ul style=\"cursor: auto; color: inherit;\">\n<li style=\"margin-left: -8.25pt; font-size: 19.5pt; cursor: auto; color: inherit;\" aria-level=\"1\">\n<p style=\"margin-top: 0pt; margin-bottom: 0pt; line-height: 1.08; cursor: auto; color: inherit;\"><span style=\"font-size: 30pt; cursor: auto; color: inherit;\">Concept:&nbsp; Using marginal cost (MC) and marginal revenue (MR) to make profit-maximizing decisions<\/span><\/p>\n<\/li>\n<li style=\"margin-left: -8.25pt; font-size: 19.5pt; cursor: auto; color: inherit;\" aria-level=\"1\">\n<p style=\"margin-top: 6pt; margin-bottom: 0pt; line-height: 1.08; cursor: auto; color: inherit;\"><span style=\"font-size: 30pt; cursor: auto; color: inherit;\">MC = additional cost from doing one more of something<\/span><\/p>\n<\/li>\n<li style=\"margin-left: -8.25pt; font-size: 19.5pt; cursor: auto; color: inherit;\" aria-level=\"1\">\n<p style=\"margin-top: 6pt; margin-bottom: 0pt; line-height: 1.08; cursor: auto; color: inherit;\"><span style=\"font-size: 30pt; cursor: auto; color: inherit;\">MR = additional revenue from doing one more of something<\/span><\/p>\n<\/li>\n<li style=\"margin-left: -8.25pt; font-size: 19.5pt; cursor: auto; color: inherit;\" aria-level=\"1\">\n<p style=\"margin-top: 6pt; margin-bottom: 0pt; line-height: 1.08; cursor: auto; color: inherit;\"><span style=\"font-size: 30pt; cursor: auto; color: inherit;\">Do more when MR &gt; MC.&nbsp; Do less when MR &lt; MC.&nbsp; This will maximize profits.<\/span><\/p>\n<\/li>\n<\/ul>\n<div><span style=\"cursor: auto; color: inherit;\"><\/p>\n<ul style=\"cursor: auto; color: inherit;\">\n<li style=\"margin-left: -8.25pt; font-size: 19.5pt; cursor: auto; color: inherit;\" aria-level=\"1\">\n<p style=\"margin-top: 0pt; margin-bottom: 0pt; line-height: 1.2; cursor: auto; color: inherit;\"><span style=\"font-size: 30pt; cursor: auto; color: inherit;\">MR\/MC method is usually used to find profit-maximizing quantity of output.<\/span><\/p>\n<\/li>\n<\/ul>\n<p><br style=\"cursor: auto; color: inherit;\"><\/p>\n<ul style=\"cursor: auto; color: inherit;\">\n<li style=\"margin-left: -8.25pt; font-size: 19.5pt; cursor: auto; color: inherit;\" aria-level=\"1\">\n<p style=\"margin-top: 6pt; margin-bottom: 0pt; line-height: 1.2; cursor: auto; color: inherit;\"><span style=\"font-size: 30pt; cursor: auto; color: inherit;\">But it can be used for many other things.<\/span><\/p>\n<\/li>\n<\/ul>\n<p><br style=\"cursor: auto; color: inherit;\"><\/p>\n<ul style=\"cursor: auto; color: inherit;\">\n<li style=\"margin-left: -8.25pt; font-size: 19.5pt; cursor: auto; color: inherit;\" aria-level=\"1\">\n<p style=\"margin-top: 6pt; margin-bottom: 0pt; line-height: 1.2; cursor: auto; color: inherit;\"><span style=\"font-size: 30pt; cursor: auto; color: inherit;\">Here, it\u2019s used to find how many hours to stay open.<\/span><\/p>\n<\/li>\n<\/ul>\n<div><span style=\"font-size: 40px;\"><br \/><\/span><\/div>\n<p><\/span><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Concept:&nbsp; Using marginal cost (MC) and marginal revenue (MR) to make profit-maximizing decisions MC = additional cost from doing one more of something MR = additional revenue from doing one more of something Do more when MR &gt; MC.&nbsp; Do less when MR &lt; MC.&nbsp; This will maximize profits. MR\/MC method is usually used to [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[710],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/18088"}],"collection":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/comments?post=18088"}],"version-history":[{"count":0,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/questions\/18088\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/media?parent=18088"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/disciplines?post=18088"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/paper_types?post=18088"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.goodacademic.com\/blog\/wp-json\/wp\/v2\/tagged?post=18088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}