Marginal revenue
a. Is the additional revenue incurred by selling one more unit
b. Is the total revenue incurred by selling one more unit
c. Is the total revenue incurred by selling all the firm's output
d. Is the difference between total revenue and total costs
Question 2
For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of adverse selection?
a. After the loan has been made, individuals become careless with their finances
b. Individuals most likely to default are the ones most likely to apply for the loan
c. Borrowers investing their loan proceeds differently than the bank requires
d. None of the above
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