There Is Only One Gas Station Within Hundreds of Miles

question 54

Multiple Choice

There is only one gas station within hundreds of miles. The owner finds that when she charges $3 a gallon, she sells 199 gallons a day, and when she charges $2.99 a gallon, she sells 200 gallons a day. The marginal revenue of the 200th gallon of gas is

• A) $.01.
• B) $1.
• C) $2.99.
• D) $3.
• E) $600.

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Definitions:

Compensating Differences

Differences in the wages received by workers in different jobs to compensate for the nonmonetary differences between the jobs.

Wage Rates

Wage rates are the standard amount of compensation given to employees for their labor, typically expressed per hour or day.

Job Characteristics

Attributes or aspects of a job that influence workers' motivation and satisfaction.

Wage Differentials

The variations in wage rates due to factors such as occupation, experience, education, industry, location, and economic conditions.