What are some of the components of marginal cost and marginal benefit that the producer of a movie faces?

What will be an ideal response?

Some of the marginal costs the producer faces are the cost of an actor or actress, the costs of the crew for a day, the costs of a location, and the costs of advertising in a newspaper. The marginal benefits the producer enjoys are his or her salary and/or profit participation from the movie, royalties from the movie, the prestige resulting from a successful movie, and any awards given to the producer of the movie.

Economics

You might also like to view...

When deciding what price to charge consumers, the monopolist may choose to charge them different prices based on the customer's gender

a. true b. false

Economics

Firms are often more efficient than markets as coordinators of economic activity because

A) firms can achieve lower transaction costs. B) markets cannot coordinate production. C) firms don't rely on economies of scale while markets do. D) firm coordination is always more economically efficient than market coordination.

Economics