Michelin Notices That When the Number of Tires It Sells

question 73

Multiple Choice

Michelin notices that when the number of tires it sells increases from 1,000,000 to 1,000,001, total revenue rises $35. The $35 represents the firm's

• A) average revenue.
• B) marginal revenue.
• C) price elasticity.
• D) average variable revenue.
• E) average total cost.

---

Definitions:

SUTA

State Unemployment Tax Act; a type of payroll tax that employers must contribute to state unemployment funds.

Fair Labor Standards Act

A U.S. law that sets minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for full-time and part-time workers.

Federal Wage and Hour Law

U.S. legislation that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.

Double Pay

Double pay refers to the practice of paying an employee twice their normal wage rate, typically for working on holidays, overtime, or under special conditions.