Trusted by Students Everywhere
Why Choose Us?
0% AI Guarantee

Human-written only.

24/7 Support

Anytime, anywhere.

Plagiarism Free

100% Original.

Expert Tutors

Masters & PhDs.

100% Confidential

Your privacy matters.

On-Time Delivery

Never miss a deadline.

Why is the Marginal theory said to be a revolution in Economics?

Economics Dec 15, 2020

Why is the Marginal theory said to be a revolution in Economics?

Expert Solution

The revolutionary aspect of marginal theory and analysis is that it provides an explanation for the behavior of consumers and producers. But the marginal theory explains why consumers behave the way they do - they buy more of something until the cost of the next unit exceeds its marginal utility. In addition, marginal analysis of both revenue and costs tells the supplier of a good what level of output to produce in order to maximize profit instead of focusing entirely on revenue. Profit maximization occurs where marginal revenue equals marginal cost - that is, where producing one more unit contributes more to revenue than it costs to make.

Archived Solution
Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In
Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution
Get Custom Quote
Secure Payment