Marginal analysis

Topic Page

Questions

• How does a review of marginal analysis assist in decisions made at a firm or economy?
• What happens in a marginal analysis when revenues rise?
• Why is it important to review marginal costs and revenues in an analysis?
• Why can a marginal cost curve be "U" shaped?
• What is the marginal cost of labor?
• How does marginal cost generally change with quantity?
• Why is marginal revenue equal to price?
• What is the mathematical formula for how marginal revenue changes with quantity sold?