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) Marginal revenue increases as price falls and quantity sold increases.
C) 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.
D) 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.
C
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Because of labor hoarding, a reduction in output may signal
A) an increase in employment. B) a reduction in employment. C) no change in employment. D) a reduction in productivity.
The difference between what a productive resource receives as payment for its use in production and the cost of bringing that resource to the market is called profit
Indicate whether the statement is true or false