Market Share Theory Is Used by Courts When

question 58

Multiple Choice

Market share theory is used by courts when .

• A) a defendant is not engaged in the business of selling the type of product that caused harm to the plaintiff
• B) a defendant manufactures many different variations of the same type of product
• C) many manufacturers produced the same product that caused harm to the plaintiff
• D) the entire market share of a product belongs to one manufacturer

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Definitions:

Marginal Revenue Product

This is the additional revenue generated from employing one more unit of a factor of production, such as labor.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Average Revenue Product

The increase in total revenue resulting from employing one more unit of a resource, holding all other factors constant.

Substitution Effect

The alteration in the consumption of goods as a result of changes in their relative prices, leading consumers to substitute more expensive items with cheaper alternatives.