When a Firm Expands Output from 10 to 11 Units

question 59

Multiple Choice

When a firm expands output from 10 to 11 units and total revenue increases from $100 to $110, marginal revenue of the 11th unit is:

• A) $110.
• B) $11.
• C) $10.
• D) $210.

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Definitions:

Spatial Reasoning

The ability to understand and remember the spatial relations among objects.

Linguistic Inferences

The process of using information within language and prior knowledge to fill in gaps and understand meaning beyond the explicit information provided.

Literal Interpretations

Literal interpretations involve understanding words or phrases in their most basic, straightforward sense without inference, metaphor, or exaggeration.

Hemisphere

Half of a spherical or roughly spherical body; in geography, it refers to one half of the earth, and in neurology, it refers to one half of the brain.