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Refer to Table 10-1

Question 25

Multiple Choice

Refer to Table 10-1. What portion of the marginal revenue of the 5th unit is due to the output effect and what portion is due to the price effect?


A) output effect = $3.00; price effect = $0.50
B) output effect = $1.50; price effect = $2.00
C) output effect = $5.50; price effect = -$2.00
D) output effect = $4.00; price effect = -$0.50

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