Asked by Brandon Ramdeholl on May 26, 2024
Verified
The marginal revenue curve:
A) shows the changes in total revenue that accompany a change in quantity sold.
B) shows the relationship between sales price and units sold.
C) shows the relationship between sales revenue and quantity.
D) shows the average price at which any particular quantity can be sold.
Marginal Revenue Curve
A graph that shows the increase in revenue generated from selling one additional unit of a good or service.
Total Revenue
The total income generated by a company from its business activities, typically from the sale of goods and services before any expenses are deducted.
Quantity Sold
The total number of units of a product sold during a specific period, often used to measure business performance.
- Determine the connection among price, demand, and volume of sales.
Verified Answer
SM
Sandiso MbanjwaMay 29, 2024
Final Answer :
A
Explanation :
The marginal revenue curve shows the change in total revenue that results from a change in the quantity sold. It is the additional revenue a firm earns from selling one more unit of a good or service. Therefore, choice A is the best answer. Choices B, C, and D are incorrect because they do not accurately describe the purpose or relationship of the marginal revenue curve.
Learning Objectives
- Determine the connection among price, demand, and volume of sales.