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边际效益和边际成本(Marginal benefit and marginal cost)
边际效益和边际成本(Marginal benefit and marginal cost)
Marginal benefit is a concept in economics, it generally can understand it, that is, a market in the economic entity in the pursuit of maximum profit, many times to expand production, each generated by an investment benefit and the last time the investment benefit to have a difference between, the difference is marginal benefit. If this marginal benefit shows a trend of growth, then investment returns more than once, and investment is successful. However, each economic entity of the plant and production equipment is fixed in the short term, so the pursuit of maximum profits it can only be achieved by increasing labor input, and when the labor force exceeds the needs of the production equipment, some people work is in the inefficient state, then the marginal benefit of wouldnt keep growth trend, but fell decline after reach an equilibrium. It is well known that an enterprise can not only achieve the maximum profit by increasing the labor force, but also introduce advanced equipment and improve management level.
Marginal cost refers to the additional cost when increasing unit output. If the marginal revenue is represented by MR, MR = the change in the total yield of the change in sales volume. If the marginal cost is represented by MC, the change in the total cost of MC = the change in total cost is the change in the volume of sales (production).
If use П said the manufacturers profits, П = TR - TC. Then the profit maximization can use П = TR - the maximization of TC.
So, when is the difference between total revenue and total cost? The answer is when marginal revenue equals marginal cost. Because if the marginal benefit is greater than the marginal cost, it means that increasing the unit output will increase the total profit, so the manufacturers will continue to increase production. If the marginal revenue is less than the marginal cost means that the increase in unit production will reduce the total profit, the manufact
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