Which of the Following Statements Is True About Marginal Revenue

question 19

Multiple Choice

Which of the following statements is true about marginal revenue?

• A)If marginal revenue is zero, it means that quantity demanded falls to zero when a firm changes its price.
• B)If marginal revenue is negative, the additional revenue received from selling 1 more unit of the good is smaller than the revenue lost from receiving a lower price on all the units that could have been sold at the original price.
• C)If marginal revenue is positive, the additional revenue received from selling 1 more unit of the good is smaller than the revenue lost from receiving a lower price on all the units that could have been sold at the original price.
• D)Marginal revenue increases as price falls and quantity sold increases.

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Definitions:

Gross Motor Activation

The use and control of large body muscles for activities such as crawling, walking, jumping, and running.

Response Rate

Response rate refers to the proportion of people who answer or respond to surveys, questionnaires, or experimental interventions among those who were asked to participate.

Reaction Time

The interval of time between the presentation of a stimulus and the response to it, often used as a measure of sensory and motor performance.

Stimulus

A change in the environment that leads to a change in behavior.