Figure 13-3 -Refer to Figure 13-3.The Marginal Revenue from One Additional Unit

Multiple Choice

Figure 13-3

-Refer to Figure 13-3.The marginal revenue from one additional unit sold is the sum of the gain in revenue from selling the additional unit and the loss in revenue from having to charge a lower price to sell the additional unit.Based on the diagram in the figure,

A) X represents the gain (price effect) and Y the loss (output effect) .
B) X + Z represents the loss (output effect) and Y the gain (price effect) .
C) Y represents the gain (output effect) and X the loss (price effect) .
D) X represents the loss (price effect) and Y + Z the gain (output effect) .