IB skill practice

Use marginal cost and revenue

Calculate marginal profit from marginal revenue and marginal cost.

Paper 1, Paper 2 5 marks Difficulty 3

Use marginal cost and revenue - technology-output use

A transport timing survey has marginal revenue \(34\) and marginal cost \(22\) at the current output. Calculate marginal profit. Enter the requested value and choose the interpretation that matches the result.

Worked practice: result and interpretation

Calculate the requested result first, then choose the interpretation that follows from it.