Figure 11-2
-Refer to Figure 11-2.The marginal revenue from selling the additional unit Qb instead of Qₐ equals

Question

Quizplus · Accepted Answer

The marginal revenue from selling the additional unit Qb instead of Qa equals the change in total revenue from selling Qb instead of Qa, which is represented by the area (H - E) in the figure. This is because the price for the additional unit is given by the marginal revenue curve, which in this case is the horizontal line at a height of H, while the price for Qa is given by the demand curve, which in this case is the horizontal line at a height of E. Therefore, the difference in price times the quantity sold is given by the area (H - E) in the figure.

Figure 11-2 -Refer to Figure 11-2.The Marginal Revenue from Selling the Additional