Scenario 1-1 Suppose a cell-phone manufacturer currently sells 20,000 cell-phone

Question

Scenario 1-1
Suppose a cell-phone manufacturer currently sells 20,000 cell-phones per week and makes a pro?t of
$5,000 per week. A manager at the plant observes, “Although the last
3,000 cell phones we produced and sold increased our revenue by $6,000 and our costs by $6,700,
we are still making an overall pro?t of $5,000 per week so I think we’re on the right track. We are producing the optimal number of cell phones.”

6) Refer to Scenario 1-1. Using marginal analysis terminology, what is another economic term for the incremental revenue received from the sale of the last 3,000 cell
phones?
a. gross pro?t
b. marginal revenue
c. gross earnings
d. sales revenue

Explanation / Answer

b. marginal revenue

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.