There Goes 8 Bucks!

Phil and Jay operate a parking lot together and hired a talkative woman to operate the booth (thanks to a coin flip!). Her chattiness causes a car behind Jay to drive away, which means the two don’t earn $8 from that one additional car. This simple clip is a good introduction to the concept of marginal revenue in that each car to the parking lot represents “another $8” to the firm.


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