In Table 24.1, marginal revenue at the profit-maximizing level of output is
A) $150.00
B) $250.00
C) $300.00
D) $550.00

Question

In Table 24.1, marginal revenue at the profit-maximizing level of output is
A) $150.00 
B) $250.00 
C) $300.00 
D) $550.00

Quizplus · Accepted Answer

Marginal revenue is equal to the additional revenue earned by producing one additional unit of output. At the profit-maximizing level of output, the marginal cost is equal to the marginal revenue. In Table 24.1, the profit-maximizing level of output is 6 units where the marginal cost is $300.00. Therefore, the marginal revenue at this level of output is also $300.00.