Question: 1. Distinguish among price, marginal revenue, and average revenue (where average revenue is total revenue divided by the quantity sold).
2. Draw a graph showing a demand and supply situation where marginal analysis correctly indicates that the firm should continue producing even though the profit and loss statement shows a loss.
3. Discuss the idea of drawing separate demand curves for different market segments. It seems logical because each target market should have its own marketing mix. But won't this lead to many demand curves and possible prices! And what will this mean with respect to functional discounts and varying prices in the marketplace? Will it be legal? Will it be practical!