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10 November, 10:45

What are marginal benefits of producing a movie

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  1. 10 November, 12:05
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    The marginal benefit of movies in a series decreases because revenue falls off with each additional movie, while the marginal cost increases because actors demand higher salaries. The marginal benefit exceeds the marginal cost for the first two movies, so it is sensible to produce two, but not three, movies.
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