The marginal revenue lies {Blank} the demand curve because there is a(n) {Blank} effect whenever...

Question:

The marginal revenue lies _____ the demand curve because there is a(n) _____ effect whenever the price is lowered.

a. above; price

b. below; price

c. below; output

d. above; output

e. on; price

Marginal Revenue:

Marginal revenue is the additional revenue that a firm receives from producing an selling an additional unit of a good or service. It is equal to the change in total revenue divided by the change in output.

Answer and Explanation: 1

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The marginal revenue lies _____ the demand curve because there is a(n) _____ effect whenever the price is...

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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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