Asked by Tyson Fisher on Jun 14, 2024
Verified
Marginal revenue is equal to price if the demand curve is horizontal.
Marginal Revenue
The additional income generated from selling one more unit of a product or service.
Demand Curve
A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices.
- Understand the consequences of variations in pricing on the demand by consumers and income generated by firms.
Verified Answer
MG
Melika golforoushJun 16, 2024
Final Answer :
True
Explanation :
When the demand curve is horizontal, it means that buyers are willing to pay a fixed price regardless of the quantity of goods or services produced. Therefore, the marginal revenue generated from each unit sold is equal to the price of the good or service.
Learning Objectives
- Understand the consequences of variations in pricing on the demand by consumers and income generated by firms.