Final answer:
The marginal revenue is the additional revenue generated from selling one additional unit of a product. It is calculated by finding the change in total revenue when the quantity increases by one unit.
Step-by-step explanation:
Marginal revenue is the additional revenue generated from selling one additional unit of a product. To find the marginal revenue, we need to calculate the change in total revenue when the quantity increases by one unit. In this case, the demand function is given as p = 100 - 2x, where p is the price per unit and x is the quantity. We can find the total revenue function by multiplying the price per unit (p) by the quantity (x). So, total revenue (TR) = px = (100 - 2x)x = 100x - 2x^2.
To find the marginal revenue, we need to find the change in total revenue when the quantity increases by one unit. Let's consider the example given in Table 9.3 where the quantity increases from 1 to 2 units and the total revenue increases from $1200 to $2200. The change in total revenue is $2200 - $1200 = $1000. Therefore, the marginal revenue of the second unit is $1000.