Kate is a professional opera singer who gives voice lessons. The vocal-music industry is competitive. Kate

hires a business consultant to analyze her financial records. The consultant recommends that Kate give

fewer voice lessons. The consultant must have concluded that Kate's

a) total revenues exceed her total accounting costs.

b) marginal revenue exceeds her total cost.

c) marginal revenue exceeds her marginal cost.

d) marginal cost exceeds her marginal revenue.

Question

Magdalena Hess

Social Studies

28 November, 07:01

Kate is a professional opera singer who gives voice lessons. The vocal-music industry is competitive. Kate

hires a business consultant to analyze her financial records. The consultant recommends that Kate give

fewer voice lessons. The consultant must have concluded that Kate's

a) total revenues exceed her total accounting costs.

b) marginal revenue exceeds her total cost.

c) marginal revenue exceeds her marginal cost.

d) marginal cost exceeds her marginal revenue.

+3

Answers (1)

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Anise · Answer 1

D

Explanation:

The industry is a competitive market; hence Kate is told to give fewer lesson because her marginal cost (cost of producing an additional vocal music lesson) is greater than the marginal revenue (additional revenue she receives).