The marginal revenue that would be derived from producing a fourth unit of output is

A) $30
B) $24
C) $21
D) $18
E) $12

Question

The marginal revenue that would be derived from producing a fourth unit of output isA) $30B) $24C) $21D) $18E) $12

Aditya Chauhan · Accepted Answer

Final Answer : E, Explanation :   Marginal revenue is the additional revenue that is gained from selling one more unit of a product. To calculate the marginal revenue of producing the fourth unit, subtract the total revenue of selling 3 units from the total revenue of selling 4 units. The total revenue from selling 3 units is   3 × $ 24 = $ 72 3 	imes \$24 = \$72 3 × $24 = $72  , and the total revenue from selling 4 units is   4 × $ 21 = $ 84 4 	imes \$21 = \$84 4 × $21 = $84  . The marginal revenue from producing the fourth unit is therefore \$84 - \$72 = \$12.

The marginal revenue that would be derived from producing a fourth unit of output is

A) $30
B) $24
C) $21
D) $18
E) $12

Definitions

Learning Objectives

Learning Objectives

Related questions