For All Firms, the Additional Revenue Collected from the Sale

question 32

Multiple Choice

For all firms, the additional revenue collected from the sale of one additional unit of output is termed:

• A)price.
• B)average revenue.
• C)marginal profit.
• D)marginal revenue.

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Definitions:

Covariance

A statistical measure that indicates the extent to which two variables change together; if the greater values of one variable mainly correspond with the greater values of the other variable, and the same holds for the lesser values, the covariance is positive.

Slope

A measure of the steepness or incline of a line, representing the ratio of the change in the y-value to the change in the x-value.

Coefficient of Correlation

A statistical measure that computes the strength and direction of a linear relationship between two variables.

Direction

The course along which someone or something moves, or a particular position or orientation regarding space or time.