If Marginal Revenue Is Zero

question 2

Multiple Choice

If marginal revenue is zero

• A) Total revenue is constant
• B) Total revenue falls
• C) Total revenue increases
• D) Profits increase

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Definitions:

Market Interest Rate

The current rate of interest available in the market that borrowers must pay to obtain funds.

Carrying Value

The book value of assets and liabilities on a company’s balance sheet, often different from the market value.

Discount On Bonds

The difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.

Premium

The amount paid in excess of a standard cost or the face value of a financial instrument, often associated with insurance policies, bonds, and options.