Table 11-2 in Table 11-2, Marginal Revenue at the Profit-Maximizing

question 46

Multiple Choice

Table 11-2 In Table 11-2, marginal revenue at the profit-maximizing output is how much?

• A)$5
• B)$7
• C)$8
• D)$110

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Definitions:

Long Run

A timeframe during which all production factors and expenses can change, permitting adjustments to all inputs.

Allocative Efficiency

A state of the economy in which production is in accordance with consumer preferences; every good or service is produced up to the point where the last unit provides a utility to consumers equal to the cost of producing it.

Consumer Surplus

The difference in the amount consumers are prepared and have the means to pay for a service or good compared to the amount they actually do pay.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, often depicted as the area above the supply curve and below the market price.