113 review questions copy

B is the cost of production for a firm on the verge

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: f producing one additional unit. B. is the cost of production for a firm on the verge of bankruptcy. C. is the additional output produced by spending one additional dollar. D. None of the above. 5. Marginal revenue is A. the number of additional units that must be sold to earn one additional dollar of revenue B. the revenue earned by selling one additional unit C. the profit margin on the last unit sold D. a level of revenue close to zero 16 6. Consider Table 4-1. It summaries the marginal revenue (MR) and marginal cost (MC) data for a producer of garden sheds in any given year. How many sheds should this producer make in order to maximize profits? 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 MR 150 135 120 115 105 100 95 90 95 85 80 75 65 50 40 MC 65 72 75 83 85 87 92 96 102 107 125 153 180 222 290 Table 4-1 A. B. C. D. One. Seven. Eight. Fifteen. 7. Recall Table 4-1. A possible explanation for the MC profile is that A. the producer faces a small market with relatively few buyers. B. shed production gets easier as the le...
View Full Document

Ask a homework question - tutors are online