Refer to Figure 13.3. This firm's marginal revenue will be negative at

A) prices below $10.
B) prices above $12.
C) all prices.
D) prices between $4 and $18.

Question

Refer to Figure 13.3. This firm's marginal revenue will be negative atA)  prices below $10.B)  prices above $12.C)  all prices.D)  prices between $4 and $18.

Ashley Schlorff · Accepted Answer

Final Answer : A, Explanation :  When prices fall below $10, the firm is likely to be operating in the inelastic portion of the demand curve, where a decrease in price leads to a decrease in total revenue, resulting in negative marginal revenue.

Refer to Figure 13.3. This firm's marginal revenue will be negative at

A) prices below $10.
B) prices above $12.
C) all prices.
D) prices between $4 and $18.

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Learning Objectives

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