Figure 13-3

-Refer to Figure 13-3.The marginal revenue from one additional unit sold is the sum of the gain in revenue from selling the additional unit and the loss in revenue from having to charge a lower price to sell the additional unit.Based on the diagram in the figure,
A)X represents the gain (price effect)and Y the loss (output effect).
B)X + Z represents the loss (output effect)and Y the gain (price effect).
C)Y represents the gain (output effect)and X the loss (price effect).
D)X represents the loss (price effect)and Y + Z the gain (output effect).

Question

Figure 13-3
 
-Refer to Figure 13-3.The marginal revenue from one additional unit sold is the sum of the gain in revenue from selling the additional unit and the loss in revenue from having to charge a lower price to sell the additional unit.Based on the diagram in the figure,
A)X represents the gain (price effect)and Y the loss (output effect). 
B)X + Z represents the loss (output effect)and Y the gain (price effect). 
C)Y represents the gain (output effect)and X the loss (price effect). 
D)X represents the loss (price effect)and Y + Z the gain (output effect).

Quizplus · Accepted Answer

The Answer of Figure 13-3
 
-Refer to Figure 13-3.The marginal revenue from one additional unit sold is the sum of the gain in revenue from selling the additional unit and the loss in revenue from having to charge a lower price to sell the additional unit.Based on the diagram in the figure,
A)X represents the gain (price effect)and Y the loss (output effect). 
B)X + Z represents the loss (output effect)and Y the gain (price effect). 
C)Y represents the gain (output effect)and X the loss (price effect). 
D)X represents the loss (price effect)and Y + Z the gain (output effect).

Figure 13-3 -Refer to Figure 13-3.The Marginal Revenue from One Additional Unit