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Based on this chart, what is the marginal revenue, in dollars, at quantity three jackets?Select one:

a. Four
b. 11
c. 16
d. 36

Based on this chart, what is the marginal revenue, in dollars, at quantity three jackets-example-1
User GingerBear
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2 Answers

7 votes

Answer:

16 Was Correct. Got A 100%!

Explanation:


User Mdcq
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3 votes

Marginal Revenue is the rate of change of Total Revenue.

So when we want to know the marginal revenue at a certain quantity, we check by how much the total revenue changed from the previous quantity unit.

For example, looking at the table,

  • At quantity 1, the total revenue is 20.
  • At quantity 2, the total revenue is 38.
  • At quantity 3, the total revenue is 54.

So the marginal revenue at quantity 2 is the difference between total revenue of quantity 2 with the previous quantity (which is quantity 1). So,


38-20=18

Similarly, the marginal revenue at quantity 3 is the difference between total revenue of quantity 3 with the previous quantity (which is quantity 2). So,


54-38=16

Our answer is 16, option C.


ANSWER: C


User Bala Anirudh
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