Michelin Notices That When the Number of Tires It Sells

question 73

Multiple Choice

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

• A) average revenue.
• B) marginal revenue.
• C) price elasticity.
• D) average variable revenue.
• E) average total cost.

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Definitions:

Economic Capital

The assets or resources that an individual or entity has, which can be used to produce economic value.

Norms

Shared expectations or rules within a culture or society that guide and constrain behavior, establishing standards of conduct.

Stratification

The hierarchical arrangement of individuals or groups in a society based on wealth, power, status, or other criteria that leads to unequal access to resources and opportunities.

United States

A federal republic consisting of 50 states, a federal district, five major self-governing territories, and various possessions, known for being a leading world economic and military power.