The Statement That Is True About Marginal Revenue Is

question 92

Multiple Choice

The statement that is true about marginal revenue is

• A)If marginal revenue is zero, it means that quantity demanded falls to zero when a firm changes its price.
• B)If marginal revenue is negative, the additional revenue received from selling 1 more unit of the good is smaller than the revenue lost from receiving a lower price on all the units that could have been sold at the original price.
• C)If marginal revenue is positive, the additional revenue received from selling 1 more unit of the good is smaller than the revenue lost from receiving a lower price on all the units that could have been sold at the original price.
• D)Marginal revenue increases as price falls and quantity sold increases.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues.

Beginning Total Assets

The total value of all assets owned by a company at the start of a financial period.

Ending Total Assets

Ending Total Assets refer to the total value of all assets owned by a company at the end of a financial reporting period.

Return on Total Assets

Return on total assets (ROTA) is a financial metric that measures a company's profitability in relation to its total assets, indicating how efficiently a company uses its assets to generate profit.