Which of the following statements is true about marginal revenue?
A) If marginal revenue is zero, it means that quantity demanded falls to zero when a firm changes its price.
B) Marginal revenue increases as price falls and quantity sold increases.
C) If marginal revenue is negative, the additional revenue received from selling 1 more unit of the good is smaller than the revenue lost from receiving a lower price on all the units that could have been sold at the original price.
D) If marginal revenue is positive, the additional revenue received from selling 1 more unit of the good is smaller than the revenue lost from receiving a lower price on all the units that could have been sold at the original price.
C
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Martin Shore lost his job when General Motors closed down its local plant. He has been visiting the personnel offices of the other factories in the area, looking for a new job. He is:
a. a member of the civilian labor force who is employed. b. a member of the civilian labor force who is unemployed. c. a member of the civilian labor force who is underemployed. d. a discouraged worker who is not a member of the labor force. e. not a member of the labor force.
A decrease in the rate of interest, other things being equal, will cause a:
a. rightward shift of the investment demand curve. b. movement upward along the investment demand curve. c. movement downward along the investment demand curve. d. leftward shift of the investment demand curve.
What is outlet bias?
A) the tendency for households to spend more money over time B) the tendency for households to spend their money at discount stores as prices rise C) the tendency for the quality of products to improve over time even though the CPI does not measure changes in quality D) the tendency for consumers to purchase newer, more technologically advanced products even though they have higher prices
An example of a nonrenewable resource would be:
A. Forests B. Oceans C. Gold ore D. Solar energy