Title: Refer to Figure 13-3. The marginal revenue from one additional unit sold is the sum of ...
Post by: kaarnold98 on Feb 26, 2019
Figure 13-3
Refer to Figure 13-3. The marginal revenue from one additional unit sold is the sum of the gain in revenue from selling the additional unit and the loss in revenue from having to charge a lower price to sell the additional unit. Based on the diagram in the figure,
• X represents the gain (price effect) and Y the loss (output effect).
• X + Z represents the loss (output effect) and Y the gain (price effect).
• Y represents the gain (output effect) and X the loss (price effect).
• X represents the loss (price effect) and Y + Z the gain (output effect).
Refer to Figure 13-3. The marginal revenue from one additional unit sold is the sum of the gain in revenue from selling the additional unit and the loss in revenue from having to charge a lower price to sell the additional unit. Based on the diagram in the figure,
• X represents the gain (price effect) and Y the loss (output effect).
• X + Z represents the loss (output effect) and Y the gain (price effect).
• Y represents the gain (output effect) and X the loss (price effect).
• X represents the loss (price effect) and Y + Z the gain (output effect).
Title: -3Refer to Figure 13-3. The marginal revenue from one additional unit sold is the sum of ...
Post by: anuja709 on Feb 26, 2019
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