Which answer best explains why profit per hour decreases when more than ten beanbags per hour are produced?.

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04-03-2022
Business

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Which answer best explains why profit per hour decreases when more than ten beanbags per hour are produced?.

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Tundexi Tundexi · Answer 1 · 2022-03-18T10:47:36+01:00

n production, the profit per hour decreases when more than ten beanbags per hour are produced because the marginal cost is greater than marginal revenue.

What entails the marginal cost and revenue?

Normally, when marginal cost is greater, the company should raise production levels to improve efficiency and generate more profit overall.

Hence, as a result of the marginal cost greater than marginal revenue, the profit per hour will decreases when more than ten beanbags per hour are produced.