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Mimi is granted a license to sell her unique Spirit Pins at local high school lacrosse games. When Mimi prices her pins at $10, she sells 20 pins per game. When she lowers her price to $8, she sells 40 pins. The additional money she earns from dropping her price is known as the __________.

a. Output effect
b. Price effect
c. Marginal revenue
d. Opportunity cost

Sagot :

Answer:

c

Explanation:

Marginal revenue is the change revenue when quantity sold increases by one unit

Marginal revenue = change in  total revenue /change in quantity sold

Mimi's marginal revenue = $10 - $8 = $2

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