Marginal revenue is the addition to a firm’s revenue from
A. a $1 change in price.
B. a one-unit change in output.
C. the sale of inferior output.
D. a $1 reduction in marginal cost.
Answer: B
You might also like to view...
Answer the following statements true (T) or false (F)
1) As a manager, one of your responsibilities is to avoid tacit collusion. 2) If a firm receives treble damages, they are being paid a monetary reward for reporting cartel activity. 3) All else equal, it is more profitable to produce a differentiated product rather than an identical product made by a rival firm. 4) As a manager of a firm that produces an identical product as your rival, it is economically profitable to compete on price. 5) As a manager in an oligopolistic market, it is critical to take into consideration your rivals' best responses to your decisions.
Suppose that two poker players believe that they are superior players to the rest of the people at their table. Further suppose that the two players make an agreement to concede hands to each other in order to drive the other players from the game first. Economists would model such behavior as
a. monopolistic competition. b. game theory. c. predatory pricing. d. a dominant strategy.
According to the law of diminishing marginal utility, the more of a product a person consumes per time period, other things constant:
a. the smaller will be the total utility. b. the smaller the total satisfaction per unit of consumption. c. the smaller the additional utility from an additional unit of consumption. d. the smaller will be the average utility.
If the annual real interest rate on a 10-year inflation-protected bond equals 1.5 percent and the annual nominal rate of return on a 10-year bond without inflation protection is 4.2 percent, what average rate of inflation over the ten years would make holders of inflation-protected bonds and holders of bonds without inflation protection equally well off?
A. 4.2 percent B. 2.7 percent C. 1.5 percent D. 5.7 percent