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Figure: The Marginal Decision Rule
-(Figure: The Marginal Decision Rule) Use Figure: The Marginal Decision Rule.Given the market price P₁,B is the _____ curve.

Question

Use the following to answer questions : Figure: The Marginal Decision Rule -(Figure: The Marginal Decision Rule)Use Figure: The Marginal Decision Rule.Given the market price P₁,B is the _____ curve.

Quizplus · Accepted Answer

The marginal decision rule suggests that a firm should produce at the point where marginal revenue equals marginal cost. Therefore, the curve labeled as P₁,B in the figure must be the marginal revenue curve, which represents the additional revenue earned by producing one extra unit of output.

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