Which of the Following Statements Is True About Marginal Revenue

question 19

Multiple Choice

Which of the following statements is true about marginal revenue?

• 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:

Identifying Problems

The process of recognizing issues that can impede progress or cause conflict within a project or organization.

Choosing Alternatives

The process of evaluating and deciding between two or more options in decision-making.

Rational Choice Decision Making

A decision-making framework based on the assumption that individuals choose the most rational and logical option that maximizes benefits while minimizing costs.

Implement

Implement refers to the process of putting plans, strategies, or tools into effect to achieve desired outcomes.