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:

Income

The money received, especially on a regular basis, for work or through investments.

Female

Refers to the sex of an organism, or part of an organism, that typically has the capacity to bear offspring or produce eggs.

Age Group

A category of people defined by a range of ages, often used in research and demographics.

Probability

The estimation of an event's likelihood, depicted as a numeral between 0 and 1.