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Afirmfacesadownwardslopingdemandcurve,QD=500-20P.Themarginalrevenueifthepriceweredecr...
A firm faces a downward sloping demand curve,QD=500-20P. The marginal revenue if the price were decreased from $18.00 to $17.95 is closest to:
A. $11 B. $13 C. $15 展开
A. $11 B. $13 C. $15 展开
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选A Marginal revenue is the change in total revenue per additional unit produced and
sold. At a price of 18, quantity demanded is equal to 500 - 20(18) = 140, and total revenue is 140 x 18 = $2,520. At a price of 17.95, quantity demanded is equal to 500 - 20(17.95) = 141, and total revenue is 141 x 17.95 = $2,530.95. Marginal revenue for the 141st unit is 2,530.95 - 2,520 = $10.95. (Study Session 4, LOS 15.b)
sold. At a price of 18, quantity demanded is equal to 500 - 20(18) = 140, and total revenue is 140 x 18 = $2,520. At a price of 17.95, quantity demanded is equal to 500 - 20(17.95) = 141, and total revenue is 141 x 17.95 = $2,530.95. Marginal revenue for the 141st unit is 2,530.95 - 2,520 = $10.95. (Study Session 4, LOS 15.b)
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