Marginal revenue is the
A. added revenue that a firm takes in when it increases output by one additional unit.
B. additional profit the firm earns when it sells an additional unit of output.
C. ratio of total revenue to quantity.
D. difference between total revenue and total costs.
Answer: A
You might also like to view...
If five firms of similar sizes join to form a cartel, then it is most likely that
A) they will charge a common, lower market price. B) they will collectively produce less than before. C) all five firms will earn the same profits as before. D) all five firms as a group will have falling profits, but increased output.
The resource based perspective indicates that firms exhibit different performances within the same industry because
a. Some firms have better resources than others b. Some firms have organizational structures that can be duplicated c. Some firms sell goods that have a more elastic demand d. Some firms sell goods that have a perfectly elastic demand
Suppose the money supply increases by 10 percent but velocity is not constant. Given this information, it follows that:
A. nominal GDP will increase by 10 percent. B. nominal GDP will increase by more than 10 percent. C. nominal GDP will increase by less than 10 percent. D. the change in nominal GDP cannot be determined.
In order to predict changes in aggregate demand, it must be possible to forecast
A. changes in the demand for investment goods. B. changes in the demand for consumer goods. C. changes in the demand for money. D. All of the choices are correct.