A famous tennis star is paid $200,000 for appearing in a 30-second television commercial. The actor who plays his doubles partner is paid $500. Compared to the stock actor, the famous tennis star has O A. a higher marginal revenue product because the average cost of the ad with the tennis star is higher. O B. a higher marginal revenue product because revenue increases by more from having the tennis star appear in the ad. OC. a higher marginal revenue product because the ad with the tennis star generates more profit. O D. a higher marginal revenue product because the tennis star can produce more ads. O E. a higher marginal revenue product because the cost of the ad with the tennis star is higher.

A famous tennis star is paid $200,000 for appearing in a 30-second television commercial. The actor who plays his doubles partner is paid $500. Compared to the stock actor, the famous tennis star has O A. a higher marginal revenue product because the average cost of the ad with the tennis star is higher. O B. a higher marginal revenue product because revenue increases by more from having the tennis star appear in the ad. OC. a higher marginal revenue product because the ad with the tennis star generates more profit. O D. a higher marginal revenue product because the tennis star can produce more ads. O E. a higher marginal revenue product because the cost of the ad with the tennis star is higher.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 3PA

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