Essay on Marginal Cost And Marginal Revenue

Essay on Marginal Cost And Marginal Revenue

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In the three articles I researched, each author looks at the following use of marginal cost & marginal revenue in decision-making with a strategic point of view. I looked at Covering Entrepreneurship and small business: Basic economic principles: Part II & I the articles written by Karen Hallows. I also looked at What Are the Benefits of Marginal Costs Equal to Marginal Revenue by Thomas Metcalf.
The conclusion in my first article is she looks at the basic principles of economics. Risk and return marginal benefits, marginal costs, and opportunity costs and sunk cost. She looks at a few examples. One was the food on the airlines. She goes on to state the food is bad. However, explaining that risk and return on the food is not the airlines priority it is to have a full plane of passengers. Next, she looks at opportunity cost regarding college educations and states it is lower for young adult’s age group of 18-21 verses older age groups 48-51. She also shows a few great examples of sunk cost. Best example was the all you can eat pizza buffet for $5.00. She shows an e...

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