narginal revenue produc
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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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