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:

Financial Budgets

Comprehensive financial plans that outline an organization's financial and operational goals.

Anticipated Sales

The expected volume of sales based on market research, historical data, and analysis, often used for planning and forecasting purposes.

Expenses

Expenses are the costs incurred during the operation of a business or the execution of a project, including but not limited to materials, labor, and overhead costs.

Standard Operating Procedures

Detailed, written instructions designed to achieve uniformity in the performance of a specific function or operation within an organization.