Saturday, August 13, 2011

One Economics problem, need help from someone who knows their economics?

2. increasing marginal cost. In my opinion this should be the answer, the explanation is simple the revenue whould be lower than the first sales' revenue because additional costs like product storage cost, overhead cost, etc. will be added to the product over a period of time. I think that in a monopolistic business diminishing marginal returns is not an issue as long that there is market demand.

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