If a Price-Searcher Firm Can Sell Nine Units at a Price

question 122

Multiple Choice

If a price-searcher firm can sell nine units at a price of $6, or it can sell ten units at a price of $5.75, what is the marginal revenue of the tenth unit?

• A) $1
• B) $3.50
• C) $5.75
• D) $6

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Definitions:

Behavioral Economics

A field of study that examines how psychological, cognitive, emotional, cultural, and social factors affect the economic decisions of individuals and institutions.

Rational Decision Making

A process of making choices that are logically consistent and aim at maximizing an individual's self-interest.

Behavioral Economics

A field of economics that studies the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical theory.

Policymakers

Individuals or groups responsible for making decisions and crafting regulations or laws in various sectors, including government, organizations, or institutions.