Exhibit 10-1

-According to Exhibit 10-1,if the price is $300 per tonne and the royalty is $100 per tonne,then the:

Question

Exhibit 10-1
 
-According to Exhibit 10-1,if the price is $300 per tonne and the royalty is $100 per tonne,then the:

Quizplus · Accepted Answer

The exhibit shows that at a price of $300 per tonne, the total revenue per tonne is $400 ($300 sales price + $100 royalty). Since the exhibit shows that at a quantity of 2 million tonnes, the total revenue is $800 million, the marginal revenue for an additional tonne will be $200 ($800 million divided by 2 million tonnes). Therefore, the marginal revenue will be $200 per tonne, not $300, because the additional $100 royalty cost will also be incurred.

Exhibit 10-1 -According to Exhibit 10-1,if the Price Is $300 Per Tonne