If a price-searcher firm can sell 4 units at a price of $6 or it can sell 5 units at a price of $5, the marginal revenue from the fifth unit is

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The marginal revenue is the change in total revenue from selling one more unit. Selling 4 units at $6 each gives a total revenue of $24. Selling 5 units at $5 each gives a total revenue of $25. The marginal revenue from the fifth unit is $25 - $24 = $1.

If a Price-Searcher Firm Can Sell 4 Units at a Price