Question

Distinguish between:

Marginal Revenue and Marginal Cost

Answer 1

	Marginal Revenue	Marginal Cost
Meaning	Marginal revenue is the net addition made to total revenue by selling an extra unit of the commodity.	Marginal cost is the net addition made to total cost by producing one more unit of output.
Formula	Marginal revenue is calculated with the help of the following formula: MRn = TRn – TRn-1	Marginal cost is calculated with the help of the following formula: MCn = TCn – TCn-1