Table 10.1
-Refer to Table 10.1.The marginal revenue of the 3^rd unit is

Question

Table 10.1 -Refer to Table 10.1.The marginal revenue of the 3^rd unit is A)$6.50 B)$5.50 C)$1.83 D)$0.50

Quizplus · Accepted Answer

To determine the marginal revenue of the 3^rd unit, we need to look at the change in total revenue when one additional unit is produced and sold. From the table, we can see that the total revenue increases from $12.50 to $18.00 when the quantity increases from 2 units to 3 units. Therefore, the marginal revenue of the 3^rd unit is $18.00 - $12.50 = $5.50. The best choice is to produce 3 units of the 3^rd product because it will maximize revenue considering the marginal revenue of the fourth unit is negative.

Table 10.1 -Refer to Table 10.1.The Marginal Revenue of the 3rd Unit

Table 10.1 -Refer to Table 10.1.The Marginal Revenue of the 3^rd Unit