Marginal Revenue is
A) the increase in total revenue from selling one more unit of output.
B) equal to P(1 + 1/e).
C) equal to P when the price elasticity of demand is infinite.
D) All of the above.
D
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Refer to Scenario 12.1. By what approximate percentage will Jennifer's income increase from age 25 to age 60?
A) 287 percent B) 400 percent C) 452 percent D) 561 percent
You notice that when the inflation rate increases, the interest rate tends to increase. This observation indicates that
A) there might be false causality between inflation and the interest rate. B) higher inflation rates must cause a higher interest rate. C) a scatter diagram of the inflation rate and the interest rate will show a positive relationshi
When government runs a budget deficit, it makes up the difference by:
A. issuing government bonds. B. paying down outstanding debt. C. increasing public saving. D. increasing transfer payments.
In a duopoly, one firm's low-price guarantee:
A. eliminates the other firm's incentive to undercut the first firm's price. B. encourages the other firm to cut its prices. C. guarantees that consumers will pay the lowest price possible. D. is ineffective because firms always have an incentive to break their agreements.