SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Economics A Level (DONEEEEEEE)

» Start this Course
(Practice similar questions for free)
Question:

Why is it bad to say Revenue or Marginal Revenue becoming Negative?

Author: eric_galvao



Answer:

-This is because it doesn’t make basic Economic sense, unless the Firm is PAYING the Consumer to Consume. Usually, it would be best to just show it as APPROACHING 0, not AT 0 (So MR = 0 is more at the Point where MR has very insignificant gains)


0 / 5  (0 ratings)

1 answer(s) in total