Is the extra revenue associated with selling an

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78. _____ is the extra revenue associated with selling an additional unit of output. a. Average revenue b. Marginal revenue c. Marginal cost d. Net profit e. Average variable cost ANS: B Marginal revenue is also defined as the change in total revenue with a one-unit change in output. PTS: 1 REF: 304 OBJ: 19-5 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing
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79. As long as the revenue of the last unit produced and sold is greater than the cost of the last unit pro- duced and sold, a firm should: PTS: 1 REF: 304 OBJ: 19-5 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 80. The point at which marginal cost and marginal revenue are equal always results in: PTS: 1 REF: 304 OBJ: 19-5 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 81. _____ determine what sales volume must be reached for a product before the company's total costs equal total revenue and no profits are earned. PTS: 1 REF: 304 OBJ: 19-5 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 82. The typical break-even model assumes a given fixed cost and a: a. variable per unit cost b. constant inventory turnover c. markup cost attained through keystoning d. constant production schedule e. constant average variable cost ANS: E Break-even quantity = Total fixed costs/(price - average variable cost). PTS: 1 REF: 304 OBJ: 19-5 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing
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83. Fixed cost contribution equals: PTS: 1 REF: 305 OBJ: 19-5 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing
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