| 31. | For a monopoly, for example, the price will be set where the unit / marginal cost intersects marginal revenue.
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| 32. | The marginal revenue product is the change in total revenue per unit change in the variable input assume labor.
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| 33. | When the Panic of 1893 hit, demand fell and along with demand, the firm s marginal revenue fell as well.
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| 34. | Thus the first derivative at that point is undefined and leads to a jump discontinuity in the marginal revenue curve.
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| 35. | The tradeoff is sometimes mistakenly identified as occurring at the intersection of the marginal revenue curves for the competing segments.
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| 36. | If a firm produces more than this, marginal costs outweigh marginal revenue, while if it produces less, extra profit remains untaken.
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| 37. | When an increase in output by one firm lowers the marginal revenues of the other firms, production decisions are strategic substitutes.
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| 38. | This idea can be envisioned graphically by the intersection of an upward-sloping marginal cost curve and a downward-sloping marginal revenue curve.
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| 39. | In perfectly competitive industries, the VMPP L is in identity with the marginal revenue product of labour ( MRP L ).
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| 40. | If the marginal revenue brought by the worker is less than the wage rate, then there is no need to employ.
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