This time, it's $1,007, which means that the marginal revenue of that 101st camera is just $7. Here's what it looks like written out as a formula: (Total Revenue - Original Revenue) / Additional ...

What causes a firm to shut down? When the average marginal revenue falls below the average variable costs, a firm's operations will shut down. For a company to reach its shut-down point, various ...

The variable cost of marginal cost is higher than the variable cost of average cost. According to the shutdown rule, "if price exceeds average variable costs in the short run, a firm should continue ...