Marginal Benefit : Marginal Cost :: Total Revenue : ?

Marginal benefit and marginal cost are important concepts in economics that help us understand decision-making. Marginal benefit refers to the additional satisfaction or value gained from consuming one more unit of a good or service, while marginal cost is the cost of producing or consuming that extra unit. When we look at total revenue, which is the total amount of money a company earns from selling its products, we can compare it to total cost, which is how much it costs to produce those products. Just like we use marginal analysis to weigh benefits against costs, businesses also need to consider their total revenue against their total costs to determine if they are making a profit. For example, if a lemonade stand sells 10 cups for $1 each, the total revenue is $10, and if it costs $8 to make the lemonade, the total cost is $8, leading to a profit of $2.