If the XYZ Company can sell 4 units per week at $10 per unit and 5 units per week at $9 per unit, the marginal revenue of the fifth unit is $5.

Question

Quizplus · Accepted Answer

The marginal revenue is the change in total revenue divided by the change in quantity sold. In this case, the total revenue from selling 4 units is $40, and the total revenue from selling 5 units is $45. Therefore, the marginal revenue of the fifth unit is $5.

If the XYZ Company Can Sell 4 Units Per Week