Figure 5.3

-In Figure 5.3, what is the curve marked III?
A) Demand
B) Marginal revenue
C) Average revenue
D) Marginal cost
E) Average total cost

Question

Figure 5.3
 
-In Figure 5.3, what is the curve marked III?
A) Demand 
B) Marginal revenue 
C) Average revenue 
D) Marginal cost 
E) Average total cost

Quizplus · Accepted Answer

Marginal revenue is typically depicted as a curve that shows the additional revenue a firm gains from selling one more unit of a good or service. It can intersect with other curves like demand, average revenue, or marginal cost at various points depending on the market structure and the firm's pricing strategy.

Figure 5.3 -In Figure 5.3, What Is the Curve Marked III