Which of the Following Characterizes the Relation Between Total Revenue

question 59

Multiple Choice

Which of the following characterizes the relation between total revenue and marginal revenue for a firm with market power?

• A) Marginal revenue is negative when total revenue is increasing.
• B) Marginal revenue is positive when total revenue is decreasing.
• C) Marginal revenue is zero when total revenue is maximized.
• D) Marginal revenue is greater than total revenue.

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Definitions:

Stock Price

The present cost at which a company's share is traded in the market.

Earnings Retention

The portion of a company's profits that is not distributed to shareholders as dividends but is kept by the company to reinvest in its core business or to pay debt.

Annual Dividend

represents the total dividend payment a company distributes to its shareholders within a given fiscal year.

Market Value

The cost for buying or selling assets or services in the marketplace at this time.