Question

Last year, bruceco sold 1000 coffee cups for $10 each. this year, the company is planning on selling 1500 coffee cups. in order to cover the additional investment they will charge $10.50 for the first 500 cups, $10.25 for the second 500 cups and $10 for the last 500. each cup costs $4.70 to produce. what is the marginal revenue for the 1125th cup?

Answer 1

Last year, BruceCo sold 1000 coffee cups for $10 each. This year, the company is planning on selling 1500 coffee cups. In order to cover the additional investment they will charge $10.50 for the first 500 cups, $10.25 for the second 500 cups and $10 for the last 500. Each cup costs $4.70 to produce. What is the marginal revenue for the 1125th cup?Answer: $10.00Last year, BruceCo sold 1000 coffee cups for $10 each.