For a firm producing at any level of output less than the most profitable one, an increase in output adds ?

Question

- more to total cost than to total revenue

- more to total revenue than to total cost

- the same amount to total revenue as to total cost

- to total revenue but not to total cost

Please help with this homework question, I don't seem to understand the concept

Answer 1

- more to total revenue than to total cost

Until most profitable level of output (MR=MC) revenue rises more than costs and after that level costs are higher than revenue.

Answer 2

More to total revenue than to total cost. Adding more output will generate more revenue until the point where MC=MR.