2. Sally sells seashells by the seashore. When Sally prices her shells at $7 each, she sells...

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2. Sally sells seashells by the seashore. When Sally prices her shells at $7 each, she sells 5 shells every day. When she prices her shells at $6, she sells 6.

a. What is Sally’s total revenue when she chooses to sell 5 shells (by pricing at $7)?

b. What is Sally’s total revenue when she chooses to sell 6 shells (by pricing at $6)?

c. What is the marginal revenue Sally receives from deciding to sell a 6th shell?

d. The 6th shell sells for a price of $6. Why is the marginal revenue from selling a 6th shell so much lower than $6?

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Microeconomics

ISBN: 9780716759751

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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Question Posted: Oct 16, 2024 01:00 AM

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2. Sally sells seashells by the seashore. When Sally prices her shells at $7 each, she sells...

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Microeconomics

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