Figure 10.1 -Refer to Figure 10.1.The marginal revenue from the increase in price from P₀ to P₁ equals A)the area A. B)the area (B + D - A). C)the area (A - D). D)the area (C -

Question

Quizplus · Accepted Answer

The marginal revenue from the increase in price is equal to the change in total revenue divided by the change in quantity. From the graph, the change in total revenue is represented by the area (A - D) and the change in quantity is 1. Therefore, the marginal revenue equals (A - D)/1 = A - D, which is represented by option C.

Figure 10.1 -Refer to Figure 10.1.The Marginal Revenue from the Increase in the Increase