Table 13-1 -Refer to Table 13-1.What Portion of the Marginal Revenue of the Marginal

question 45

Multiple Choice

Table 13-1

-Refer to Table 13-1.What portion of the marginal revenue of the 4th unit is due to the output effect and what portion is due to the price effect?

• A)output effect = $24.00; price effect = $19.50
• B)output effect = $6.50; price effect = $2.00
• C)output effect = -$0.50; price effect = $5.00
• D)output effect = $6.00; price effect = -$1.50

---

Definitions:

Surplus

The amount of a commodity or service available beyond what is directly needed by its consumers, often leading to lower prices.

Demand and Supply of Wheat

The relationship between the quantity of wheat buyers are willing to purchase and the quantity of wheat producers are willing to sell at various prices.

Temporary Price

A price set for a product or service for a limited period before it is expected to change.

Surplus

The situation in which the quantity of a good supplied exceeds the quantity demanded, often leading to lower prices.