The following table shows the total revenue (in dollars)and total cost (in dollars)from the production and sale of different units of a product.
Table 2-1

-Refer to Table 2-1.What is the marginal revenue of the firm associated with the sale of the 5th unit of the good?
A)$55
B)$8
C)$7
D)$48
E)$4

Question

The following table shows the total revenue (in dollars)and total cost (in dollars)from the production and sale of different units of a product.
Table 2-1
 
-Refer to Table 2-1.What is the marginal revenue of the firm associated with the sale of the 5th unit of the good?
A)$55 
B)$8 
C)$7 
D)$48 
E)$4

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one additional unit of the good. The total revenue from selling 4 units is $224 and the total revenue from selling 5 units is $231, so the marginal revenue associated with the sale of the 5th unit is $231 - $224 = $7. The best choice is C.

The Following Table Shows the Total Revenue (In Dollars)and Total