Figure 10.3
-Refer to Figure 10.3.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 10.3 
-Refer to Figure 10.3.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 10.3 
-Refer to Figure 10.3.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 10.3 -Refer to Figure 10.3.The Marginal Revenue from One Additional Unit