Asked by
Buddy Charles
on Dec 12, 2024
Verified
If a price-searcher firm can sell nine units at a price of $6, or it can sell ten units at a price of $5.75, what is the marginal revenue of the tenth unit?
A) $1
B) $3.50
C) $5.75
D) $6
Marginal Revenue
The rise in income achieved by selling an extra unit of a product or service.
Price Searcher
A seller that determines the selling price of its product or service based on market conditions, demand, and competition, instead of adhering to a market dictated price.
- Explain the contribution of marginal cost and marginal revenue to the maximization of profitability for firms that engage in price exploration.
Verified Answer
NA
Learning Objectives
- Explain the contribution of marginal cost and marginal revenue to the maximization of profitability for firms that engage in price exploration.