Variable Cost has the greatest effect on Marginal Cost. F Marginal is the additional or extra amount of anythingcost, revenue, or output. F Marginal Utility is the incremental or extra satisfaction from each unit purchased. Marginal Cost is the additional cost of opening a new factory. Total Revenue minus Total Cost = Return on Investment (ROI). F In Perfect Competition; Price = Marginal Revenue (MR) = Supply F Profit Maximization for a Firm is determined by finding the price and output intersection, or MC = MR. F If MR is exceeding MC; the company should reduce production thus maximizing profit. T F In the short run, if the intersection ofwhere MC=MR meet is below the average total cost, but above the average variable firm should not continue producing. T F Variable costs are ones that can be halted in the short term (eg. labor, materials and maintenance). T F Perfect Competition, Monopolies and Monopolistic Competition all have a similar downward sloping Demand curve. T F Product/brand differentiation is the most important feature of a monopolistically competitive market. T F A monopoly offers such a differentiated product, they can charge m price at all