The Jeans Store sells 7 pairs of jeans per day when it charges $100 per pair.It sells 8 pairs of jeans per day at a price of $90 per pair.What is the marginal revenue of the eighth pair of jeans?
A)$20.
B)$90.
C)$100.
D)$700.

Question

Quizplus · Accepted Answer

The marginal revenue of the eighth pair of jeans is calculated by the increase in total revenue from selling one more pair of jeans. Selling 7 pairs at $100 each generates $700 in revenue. Selling 8 pairs at $90 each generates $720 in revenue. The increase in revenue, or marginal revenue, for the eighth pair is $720 - $700 = $20.

The Jeans Store Sells 7 Pairs of Jeans Per Day