Table 91 -Refer to Table 9

question 168

Multiple Choice

Table 9.1
$$\begin{array} { | c | c | c | } \hline \text { Quantity } & \text { Price } & \text { Total Revenue } \\&\text { (dollars) } & \text { (dollars) } \\\hline 1 & 7.50 & 7.50 \\\hline 2 & 7.00 & 14.00 \\\hline 3 & 6.50 & 19.50 \\\hline 4 & 6.00 & 24.00 \\\hline 5 & 5.50 & 27.50 \\\hline 6 & 5.00 & 30.00 \\\hline\end{array}$$
-Refer to Table 9.1.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

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Definitions:

Paid in Capital in Excess

The amount received from shareholders in excess of the par or stated value of the shares, also known as additional paid-in capital or share premium.

Common Stock

A type of equity security that represents ownership in a corporation, with holders potentially entitled to dividends and voting rights.

Discount

A reduction in the price of goods or services offered by a seller, often used as a strategy to increase sales or reward customer loyalty.