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lawyer [7]
3 years ago
14

Which of the following statements is true about marginal revenue?

Business
1 answer:
shutvik [7]3 years ago
5 0

Answer: Option B

Explanation: Marginal revenue is the additional revenue from selling one more unit.

A. Marginal revenue equals zero means there is no additional revenue from selling one more unit, the demand could be positive.

B. Negative marginal revenue shows that the  revenue earned from selling additional unit is less than the additional unit sold before.

C. Positive marginal revenue shows that the revenue earned from selling additional unit is more than the additional unit sold before.

D. Marginal revenue increases when price and quantity both increases.

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Read 2 more answers
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