Sue's Surfboards is the sole renter of surfboards on Big Wave Island. Sue does not price discriminate. For Sue's Surfboards, the change in total revenue from each additional surfboard rented is her
A) marginal revenue and is equal to the rental price of a surfboard.
B) marginal cost and is greater than the rental price of a surfboard.
C) marginal revenue and is less than the rental price of a surfboard.
D) marginal cost and is constant regardless of how many surfboards are rented.
C
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Changes in which of the following shifts the aggregate supply curve? i. the price level ii. the money wage rate iii. potential GDP
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
A relatively large increase in the cost of electricity would likely
a. result in a large increase in the use of gas for home use immediately. b. cause an immediate large decline in the use of electricity. c. increase the use of gas and decrease the use of electricity after a time lapse. d. cause an equal reduction in the use of electricity immediately.
Sam wins a Mega Millions jackpot worth $3 million. Which of the following is most likely true of Sam's consumption function? a. His consumption function will be flatter
b. His consumption function will be steeper. c. His consumption function will shift upward. d. His consumption function will shift downward.
A U.S. individual buys shares in a Swiss company. This transaction will be entered as
A. a credit in the U.S. capital account. B. a debit in the U.S. current account. C. a debit in the U.S. capital account. D. a credit in the U.S. current account.