LSC CUMBERLAND EC202 MICRO>PKG<
LSC CUMBERLAND EC202 MICRO>PKG<
21st Edition
ISBN: 9781260586992
Author: McConnell
Publisher: MCG
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Chapter 12.4, Problem 1QQ

The MR curve lies below the demand curve in this figure because the:

a.    demand curve is linear (a straight line).

b.    demand curve is highly inelastic throughout its full length.

c.    demand curve is highly elastic throughout its full length.

d.    gain in revenue from an extra unit of output is less than the price charged for that unit of output.

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Price Elasticity of Supply; Author: Economics Online;https://www.youtube.com/watch?v=4bDIm3j-7is;License: Standard youtube license