A seller's incentive to increase production is reflected in its
A)marginal revenue curve.
B)demand curve.
C)market equilibrium price.
D)market share.

Question

Quizplus · Accepted Answer

The marginal revenue curve shows the additional revenue generated by producing one more unit of a good or service. If a seller has an incentive to increase production, it will likely continue producing as long as the marginal revenue exceeds the marginal cost, which is represented by the marginal cost curve. Therefore, sellers will increase production to maximize profits.

A Seller's Incentive to Increase Production Is Reflected in Its