Marginal revenue is the addition to a firms revenue

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85. Marginal revenue is the addition to a firm’s revenue from a. a $1 change in price. E,R b. a one-unit change in output. c. the sale of inferior output. d. a $1 reduction in marginal cost. 86. To find a firm’s total revenue at every quantity, all you need to know is D,A a. the demand curve for its product. b. the demand curve for its product and its total cost. c. its profit-maximizing price and quantity. d. its total profit curve. 87. The demand curve for a firm’s product is also the curve showing E,R 88. Total revenue M,I 89. Average revenue is equal to M,I a. DTR/DQ. b. (P  ×  Q)/P. c. DTR/DQ. d. All of the above are correct.
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Chapter 7/Output, Price, and Profit: The Importance of Marginal Analysis 239 90. If the output of a firm is increased by one unit, the revenue addition is called E,R 91. A firm can always increase its output by one unit at a marginal cost of $10. Its marginal cost curve  is E,A a. a horizontal line. b. a vertical line. c. a ray with slope equal to 10. d. exactly one-tenth as steep as its total cost curve. 92. Joe and Ed go to a diner that sells hamburgers for $5 and hot dogs for $3. They agree to split the  lunch bill evenly. Ed chooses a hot dog. The marginal cost to Joe then of ordering a hamburger  instead of a hot dog is M,A a. $1. b. $2. c. $2.50. d. $3. 93. Whenever average cost exceeds marginal cost, a. average cost is rising. M,A b. average cost is falling. c. marginal cost is rising. d. marginal cost is falling. 94. A grocery store sells soup for $1.50 a can, or $2.50 for two cans. To a customer, the marginal cost  of buying the second can of soup is E,A a. $1. b. $1.25. c. $1.50. d. $2.50. 95. Average cost equals E,A
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