Definitions
- Describing a situation where the cost of producing one more unit of a good is less than the price it can be sold for. - Referring to a level of production where the marginal cost is less than the marginal revenue. - Talking about a point where the producer can increase output without incurring additional costs.
- Describing a situation where the cost of producing one more unit of a good is greater than the price it can be sold for. - Referring to a level of production where the marginal cost is greater than the marginal revenue. - Talking about a point where the producer cannot increase output without incurring losses.
List of Similarities
- 1Both words describe situations related to production and costs.
- 2Both words are used in economics and business contexts.
- 3Both words refer to levels of production and output.
- 4Both words are used to analyze profit and loss in a business.
What is the difference?
- 1Meaning: Inframarginal refers to a level of production where the marginal cost is less than the marginal revenue, while submarginal refers to a level of production where the marginal cost is greater than the marginal revenue.
- 2Profitability: Inframarginal is associated with profitability and maximizing profits, while submarginal is associated with losses and minimizing losses.
- 3Production: Inframarginal implies that the producer can increase output without incurring additional costs, while submarginal implies that the producer cannot increase output without incurring losses.
- 4Usage: Inframarginal is a less common term used in specialized economic contexts, while submarginal is a more common term used in general economic contexts.
- 5Connotation: Inframarginal has a positive connotation as it is associated with maximizing profits, while submarginal has a negative connotation as it is associated with incurring losses.
Remember this!
Inframarginal and submarginal are two terms used in economics to describe different levels of production and costs. Inframarginal refers to a level of production where the marginal cost is less than the marginal revenue, and the producer can increase output without incurring additional costs. On the other hand, submarginal refers to a level of production where the marginal cost is greater than the marginal revenue, and the producer cannot increase output without incurring losses.
