Businesses of all sizes, including small businesses, need to have a firm grasp on the concepts of marginal revenue and break-even point. Without this knowledge, businesses are left floundering when it ...

A rational business's main goal is always to maximize profits. As complicated as business processes can be, the end goal always remains reaching the maximum profit. There are many ways a company has ...

Marginal revenue measures extra income from producing one more unit. Compare marginal revenue and cost to decide on production adjustments. Track marginal revenue changes to set optimal production and ...

One key decision every business has to make is how much of its goods or services to make available to customers. Demand functions will give you a sense of how much revenue a business can bring in ...

Discover what a shutdown point is in economics—when companies decide it’s more practical to cease operations temporarily or permanently due to revenue not covering variable costs.

Learn the key financial metrics that signal a business shutdown point for single-product and multiproduct firms, based on managerial economics.

Marginal cost helps predict company profit by analyzing cost to produce extra units. Investors use the gap between marginal cost and revenue to assess profitability. Technology firms, due to low ...