Which of the Following Are True of Comparing Marginal Revenue

question 166

Multiple Choice

Which of the following are true of comparing marginal revenue to marginal cost?
(i) it reveals the contribution of the last unit of production to total profit
(ii) it is helpful in making profit-maximising production decisions
(iii) it always reveals whether a firm is making an economic profit
(iv) it tells a firm whether its fixed costs are too high

• A)(i) and (ii) only
• B)(iii) only
• C)(ii) and (iii) only
• D)(i), (ii), (iii) and (iv)

Grasp the concept of quantity demanded and quantity supplied and how they change with price movements.

Understand the relationship between complement goods and their impact on market demand and supply.

Interpret economic tables and charts to extract relevant information about market conditions.

Categorize the type of market intervention needed based on excess supply or demand analysis.

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Definitions:

Population

In statistics, the entire pool from which a statistical sample is drawn.

Variance

A statistical measure of the dispersion of data points in a data set, showing how far each point in the set is from the mean and from each other.

Normal Probability Distribution

A bell-shaped curve that is symmetric about the mean, describing how the values of a variable are distributed, indicating most data falls close to the mean.

Sampling Distribution

The probability distribution of a given random-sample-based statistic.