A bag of fertilizer has a marginal revenue product of $100. Thecurrent price in the store is $150. Is this a sustainableequilibrium price?No, there will be a bad surplus.No, because the government will never allow this to happen.O No, there will be a bad shortage.Yes, because the sellers are making a sustainable profit on theirsales.

A bag of fertilizer has marginal revenue of product $ 100 and its current price is $ 150

Answered: narginal revenue produc

Business

Accounting

narginal revenue produc

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A bag of fertilizer has a marginal revenue product of $100. The
current price in the store is $150. Is this a sustainable
equilibrium price?
No, there will be a bad surplus.
No, because the government will never allow this to happen.
O No, there will be a bad shortage.
Yes, because the sellers are making a sustainable profit on their
sales.

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