Reference: Ref 11-2 (Table: Barrels of Oil) Refer to the table. What is the marginal revenue of producing the fifth barrel of oil?
A) 61
B) 50
C) 200
D) 250

Question

Reference: Ref 11-2 (Table: Barrels of Oil) Refer to the table. What is the marginal revenue of producing the fifth barrel of oil?
A) 61 
B) 50 
C) 200 
D) 250

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue that results from producing one additional unit of output. To find the marginal revenue of producing the fifth barrel of oil, we need to find the change in total revenue from producing four barrels of oil to producing five barrels of oil. We can see from the table that producing four barrels of oil generates a total revenue of $200, and producing five barrels of oil generates a total revenue of $250. Therefore, the marginal revenue of producing the fifth barrel of oil is $250 - $200 = $50.

Reference: Ref 11-2 (Table: Barrels of Oil) Refer to the Table