If a seller can sell 5 units at $8 each and can sell a 6th unit separately for $7 (the people willing to pay $8 don't learn about the reduced price), the marginal revenue from selling the 6th unit is

Making choices on the margin means

A) scribbling on the edges of your notebook paper. B) comparing all relevant alternatives systematically and incrementally. C) making a decision based on emotions. D) making decisions in the largest possible increments. E) taking account of all marginal benefits, all opportunity costs, and all sunk costs.

Refer to Figure 13-14. It is possible to lower the average cost of production by expanding output beyond Q0 to Q1. Why wouldn't a firm expand its output to Q1?

A) Demand is not sufficient for consumers to buy Q1. B) The firm wants to maximize accounting profit rather than economic profit. C) The firm would suffer an economic loss at Q1 while it would break even at Q0. D) The firm's marginal revenue would be negative at Q1.