If a theatre company expects $250,000 in ticket revenue from five performances and $288,000 in ticket revenue if it adds a sixth performance, the
A) company will be making a loss on the sixth performance because its ticket sales will be less than the average revenue received from the previous five.
B) marginal revenue of the sixth performance is $38,000.
C) marginal revenue of the sixth performance is $288,000.
D) cost of staging the sixth performance is probably higher than the cost of staging the previous five.
B
You might also like to view...
Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to
A) a decrease in the supply of electric cars so that the supply curve shifts rightward. B) an increase in the supply electric cars so that the supply curve shifts rightward. C) an increase in the supply of electric cars so that the supply curve shifts leftward. D) a decrease in the supply of electric cars so that the supply curve shifts leftward. E) no change in the supply of electric cars, only a change in the quantity supplied of electric cars.
Which of the following is FALSE?
a. Maximizing division profits always leads to maximizing company-wide profits b. Managers of profit centers are usually given a lot of discretion in their decision making c. Profit centers usually largely run themselves d. A manager being rewarded on division revenues has the most incentive to make good decisions for his division