Economics A Level: What Relationship does Marginal Returns have with Marginal Costs?

Question

What Relationship does Marginal Returns have with Marginal Costs?

go kys · Accepted Answer

-When Marginal Returns (or Marginal Product) rises, Marginal Costs fall. The Opposite is True.
-MC will rise when MR falls, because if there is Less Extra Output from each Unit of Input, then the Cost per Unit of that Output will be Greater.

Economics A Level

What Relationship does Marginal Returns have with Marginal Costs?

-When Marginal Returns (or Marginal Product) rises, Marginal Costs fall. The Opposite is True. -MC will rise when MR falls, because if there is Less Extra Output from each Unit of Input, then the Cost per Unit of that Output will be Greater.

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