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Marginal revenue is equal to price if the demand curve is horizontal. a. True. b. False.

Question:

Marginal revenue is equal to price if the demand curve is horizontal.

a. True.

b. False.

Marginal Revenue:

Marginal revenue is defined as as the addition to the revenue earned by the producers when they decide to manufacture on extra unit of the good. Marginal revenue first increases, then decreases, and can also become negative. This happens when total revenue falls.

Answer and Explanation: 1

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Marginal revenue is equal to price if the demand curve is horizontal.

The given statement is TRUE.

The demand curve is horizontal when each...

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Marginal Revenue: Definition & Equation

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Chapter 2 / Lesson 13
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Learn about marginal revenue and understand how to use the marginal revenue formula. See how to calculate marginal revenue and the impact of price and marginal cost.


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