What is marginal revenue?
What will be an ideal response?
Marginal revenue is the change it total revenue from selling one more unit of output.
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In May, Jones thinks the upcoming summer's corn crop will be much lower, and the November corn price will be much higher than most people expect. To act on his belief, Jones would
A) sell November corn futures. B) buy November corn futures. C) simultaneously buy and sell November corn futures. D) profit only by waiting to see if his original conclusion was correct.
If Congress decides to increase the tax per pack paid by sellers of cigarettes, other things being equal, the price of cigarettes will rise. This rise in prices can be attributed to a(n):
a. upward movement along the supply curve for cigarettes. b. rightward shift of the supply curve for cigarettes. c. upward movement along the demand curve for cigarettes. d. leftward shift of the supply curve for cigarettes.
Consider the monopolistic competition, entry, and exit curve. Which of the following would cause both the perceived demand curve and the marginal revenue curve to shift to the right?
a. Gains induce new firms to leave the industry, causing demand from the original firm to fall. b. Gains induce new firms to leave the industry, causing demand from the original firm to rise. c. Losses induce firms to leave the industry, causing demand from the original firm to fall. d. Losses induce firms to leave the industry, causing demand from the original firm to rise.
Lawrence is a photographer. He has $230 to spend and wants to buy either a flash for his camera or a new tripod. Both the flash and tripod cost $230, so he can only buy one. This illustrates the principle that
a. trade can make everyone better off. b. people face trade-offs. c. rational people think at the margin. d. people respond to incentives.