Reference: Ref 11-3 (Table: Competitive Firm) The marginal revenue for the fifth unit of output is:
A) $70.
B) $90.
C) $450.
D) $20.

Question

Reference: Ref 11-3 (Table: Competitive Firm) The marginal revenue for the fifth unit of output is:
A) $70. 
B) $90. 
C) $450. 
D) $20.

Quizplus · Accepted Answer

To determine the marginal revenue for the fifth unit of output, we need to look at the change in total revenue when output increases from four to five units.

From the table, we can see that when the firm produces four units of output, its total revenue is $360. When it produces five units, its total revenue increases to $450.

Therefore, the marginal revenue for the fifth unit of output is $450 - $360 = $90.

Therefore, the best choice is B.

Reference: Ref 11-3 (Table: Competitive Firm) the Marginal Revenue for the Fifth