Author Question: Net revenue is defined as A) marginal revenue minus marginal cost. B) total revenue minus ... (Read 167 times)

fbq8i · **on:** Jun 29, 2018

Net revenue is defined as

A) marginal revenue minus marginal cost.
B) total revenue minus marginal cost.
C) total revenue minus total cost.
D) gross revenue minus depreciation.

Question 2

Consumers' income declines and, as a result, the demand for margarine increases. Is margarine a normal or an inferior good? Explain.

What will be an ideal response?

Ahnyah · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C

Answer to Question 2

Margarine is an inferior good. An inferior good is one for which demand increases as income decreases, which describes the situation outlined for margarine in the question.