Figure 4.1

-In Figure 4.1, what is the curve marked III?
A) Demand
B) Marginal revenue
C) Average revenue
D) Marginal cost
E) Average total cost

Question

Figure 4.1
 
-In Figure 4.1, what is the curve marked III?
A) Demand 
B) Marginal revenue 
C) Average revenue 
D) Marginal cost 
E) Average total cost

Quizplus · Accepted Answer

Curve III represents marginal revenue, which is the change in revenue resulting from the sale of an additional unit of output. This curve is typically downward sloping because as the quantity sold increases, the price received for each unit tends to decrease.

Figure 4.1 -In Figure 4.1, What Is the Curve Marked III