Question

marginal revenue, graphically, is: question 8 options: a) the slope of a line from the origin to the end of the total revenue curve. b) the slope of the total revenue curve at a given point. c) the vertical intercept of a line tangent to the total revenue curve at a given point. d) the slope of a line from the origin to a point on the total revenue curve. e) the horizontal intercept of a line tangent to the total revenue curve at a given point.

Answer 1

Marginal revenue, graphically, is the slope of the total revenue curve at a given point.

Step-by-step explanation:

Marginal revenue, graphically, is the slope of the total revenue curve at a given point.

In a perfectly competitive market, where a firm's demand curve is a horizontal line drawn at the market price level, the firm's marginal revenue curve will also be the same as the demand curve.

This means that the revenue gained from selling one more unit will be equal to the market price.

For example, if the firm sells a pack of frozen raspberries and the revenue increases by $4, then the marginal revenue for that unit is $4.