When Marginal Revenue Is Zero

question 5

Multiple Choice

When marginal revenue is zero:

• A)profit is maximized.
• B)total cost is minimized.
• C)elasticity of demand is zero.
• D)total revenue is maximized.

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Definitions:

Squared Market Shares

A measure often used in calculating market concentration, where the market shares of all firms in the market are squared and then summed.

Concentration Ratio

An economic metric that assesses the total market share controlled by the top firms within an industry.

Rivals

Competitors in a market vying for the same customers or resources.

Reactions

Responses or adjustments made by individuals, markets, or materials to external changes or stimuli.