Marginal revenue is the
A) ratio of total revenue to quantity.
B) difference between total revenue and total costs.
C) added revenue that a firm takes in when it increases output by one additional unit.
D) additional profit the firm earns when it sells an additional unit of output.
C) added revenue that a firm takes in when it increases output by one additional unit.
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Why would a firm keep producing even though it is losing money?
a. If the price is greater than the minimum average total cost, the firm will cover all its variable costs and lower its losses by paying off some of its fixed costs. b. If the price is less than the minimum average variable cost, the firm will cover all its variable costs and pay off some of its fixed costs. c. If the price is greater than the minimum average variable cost, the firm will cover all its variable costs and pay off some of its fixed costs. d. If the price is less than the minimum average variable cost, the firm will cover all its variable costs and pay off some of its fixed costs.
Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question. Assume the price of Y is $1 per unit. In Figure 19.3, point E
A. Is a high level of utility but not affordable. B. Is optimal and affordable. C. Gives the consumer a very high level of utility and is affordable. D. Represents a very low level of utility and is not desirable.
Suppose you withdraw $1,000 in cash from your checking account. Draw a T-account to show the effect of this transaction on your bank's balance sheet
What will be an ideal response?
In Japan, the market value of the land is approximately four times that of all the land in the United States, even though Japan is only about the size of California. The most likely explanation for this fact is?