Exhibit 10-1

-According to Exhibit 10-1,if the international market price is MRp and a royalty is $100 per tonne,we would expect the marginal revenue to:

Name: Exhibit 10-1 -According to Exhibit 10-1,if the international market price is MRp and a royalty is $100 per tonne,we would expect the marginal revenue to:
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Question

Exhibit 10-1
 
-According to Exhibit 10-1,if the international market price is MRp and a royalty is $100 per tonne,we would expect the marginal revenue to:

Quizplus · Accepted Answer

Since a royalty of $100 per tonne has to be paid, the marginal revenue will decrease by the amount of the royalty, i.e. by $100. Therefore, the correct option is D- decrease by $100.

Exhibit 10-1 -According to Exhibit 10-1,if the International Market Price Is MRp