Stating That Marginal Revenue Equals Price Is Equivalent to Saying

question 117

True/False

Stating that marginal revenue equals price is equivalent to saying that marginal cost equals price for the profit maximizing quantity.

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Definitions:

Marginal Benefit

The gain in pleasure or value received from the consumption of one more unit of a good or service.

Public Project

A project typically financed and operated by the government designed to serve the public interest or provide a public good.

Majority Vote

A method of decision-making where the option that receives more than half of the votes wins.

Negative Externalities

Costs experienced by a third party not involved in a transaction, arising from production or consumption of goods and services.