Assertion (A): When the marginal revenue is negative, selling one more unit lowers total revenue.
Reason (R): Marginal revenue is the rate of change of total revenue with respect to the number sold.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

R is the definition of marginal revenue. True.
A negative rate means revenue falls as sales rise, so A is true because of R.

Concept: What marginal revenue measures
Typical timeTypical: 90 s
Your timeYours: —

The rule this testsMarginal revenue

Practise this chapter →

Ten questions from Rate of Change, Marginal Cost & Revenue, at your own pace.

Assertion (A): When the marginal revenue is negative, selling one more unit lowers total revenue.Reason (R): Marginal revenue is the rate of change of total revenue with respect to the number sold.

Explanation

Assertion (A): When the marginal revenue is negative, selling one more unit lowers total revenue.
Reason (R): Marginal revenue is the rate of change of total revenue with respect to the number sold.