In the figure on the right, for the demand curve shown, marginal revenue for the price reduction from a to b can be measured using areas x and y by

In the figure on the right, for the demand curve shown, marginal revenue for the price reduction from a to b can be measured using areas x and y by



a. adding x+y
b. subtracting x from y
c. measuring only x
d. subtracting y from x
e. none of the above


Answer: b. subtracting x from y


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