Question

sue's surfboards is the sole renter of surfboards on big wave island. sue does not price discriminate. for sue's surfboards, the change in total revenue from each additional surfboard rented is her question 46 options: a) marginal revenue, which is less than the rental price of a surfboard. b) marginal cost, which is constant regardless of how many surfboards are rented. c) marginal cost, which is greater than the rental price of a surfboard. d) marginal revenue, which is equal to the rental price of a surfboard. e) marginal revenue, which is equal to average total cost in the long run.

Answer 1

The change in total revenue from each additional surfboard rented at Sue's Surfboards is called marginal revenue.

Step-by-step explanation:

The change in total revenue from each additional surfboard rented at Sue's Surfboards is called marginal revenue. Marginal revenue represents the additional revenue generated by selling one more unit of a product and is equal to the change in total revenue divided by the change in the quantity of surfboards rented. In this case, the marginal revenue is not equal to the rental price of a surfboard, so option (d) is incorrect. To determine the correct answer, we need more information about the rental price and the relationship between total revenue and the quantity of surfboards rented.