What is the difference between a firm's marginal revenue and its marginal revenue product?
A) Marginal revenue is the change in sales revenue from selling one more unit of output while marginal revenue product is the change in total revenue from hiring one more worker.
B) There is no difference between the two terms.
C) Marginal revenue is the increase in revenue when a firm raises its output price while marginal revenue product is the increase in marginal product when a firm hires an additional worker.
D) Marginal revenue is the change in sales revenue from selling one more unit of output while marginal revenue product is the profit earned from hiring one more worker.
Question 2
Some economists have suggested that network externalities result in consumers being locked into the use of products with inferior technologies.
Economists Stan Leibowitz and Stephen Margolis have studied cases that have been cited as examples of this and found
A) that consumers use products with inferior technologies when their prices are lower than products with superior technologies.
B) that in all of these cases network externalities resulted in market failure.
C) there is no convincing evidence that the alternative technologies were superior.
D) consumers sometimes do become locked into the use of products with inferior technologies.
A graphical representation of the marginal value theorem.
A typical open-end wrench. Note the size difference on each end and that the head is angled 15 ...
The human eye, a product of 600 million years of evolution (Lamb, Collin, & Pugh, 2007).
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Marginal Supply - Demand Curve
Find the derivative using the product rule