Refer to the following figure:

-When quantity demanded is 3,000, what is marginal revenue?
A) $12
B) $15
C) 0
D) $10
E) -$10

Name: Refer to the following figure: -When quantity demanded is 3,000, what is marginal revenue? A) $12 B) $15 C) 0 D) $10 E) -$10
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Question

Refer to the following figure:
 
-When quantity demanded is 3,000, what is marginal revenue?
A) $12 
B) $15 
C) 0 
D) $10 
E) -$10

Quizplus · Accepted Answer

Marginal revenue can be negative if the price effect of selling an additional unit outweighs the quantity effect. In this case, the marginal revenue is -$10, indicating that selling one more unit decreases total revenue by $10.

Refer to the Following Figure