Exhibit 7-10 Price and cost data for a firm $$\begin{array} { | c | c | c | c | c | }
\hline \text { Q } & \text { P } & \text { AVC } & \text { ATC } & \text { MC } \
\hline 0 & \$ 12 & - & - & - \
1 & 12 & 3 & 5 & 5 \
2 & 12 & 5 & 6 & 7 \
3 & 12 & 7.3 & 8 & 12 \
4 & 12 & 9.5 & 10 & 16 \
\hline
\end{array}$$ In Exhibit 7-10, MR is the same as which column?

Question

Exhibit 7-10 Price and cost data for a firm $$\begin{array} { | c | c | c | c | c | } 
\hline \text { Q } & \text { P } & \text { AVC } & \text { ATC } & \text { MC } \
\hline 0 & \$ 12 & - & - & - \
1 & 12 & 3 & 5 & 5 \
2 & 12 & 5 & 6 & 7 \
3 & 12 & 7.3 & 8 & 12 \
4 & 12 & 9.5 & 10 & 16 \
\hline
\end{array}$$ In Exhibit 7-10, MR is the same as which column?

Quizplus · Accepted Answer

Marginal Revenue (MR) is the additional revenue that a firm receives from selling one more unit of a good or service. In this exhibit, the price (P) remains constant at $12 for each unit sold, which means the additional revenue gained from selling one more unit is also constant at $12. This matches the definition of MR when price is constant, making MR equal to the price (P) column.

Exhibit 7-10 Price and Cost Data for a Firm In Exhibit 7-10, MR Is the Same as Which Column