Refer to Figure 13-2. The marginal revenue from selling the additional unit Qb instead of Qa equals
A) the area (H - E). B) the area (G + H).
C) the area G. D) the area (E + F) - (G + H).
A
Economics
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When a transfer price increases
a. the buying division will want to sell less to the selling division b. the buying division will want to sell more to the selling division c. the selling division will want to sell less to the buying division d. the selling division will want to sell more to the buying division
Economics
Consider the same monopoly situation as in the previous question. The deadweight loss (compared to a single firm behaving as if it were perfectly competitive) is about
a. 667 b. 333 c. 1,000 d. 1,333
Economics