Based on the table below what is the marginal revenue of the 28^th unit of output? A) -$16.50 B) -$13.50 C) $13.50 D) $16.50

Question

Quizplus · Accepted Answer

Marginal revenue is the change in revenue from producing one additional unit of output. Looking at the table, we can see that the revenue for producing 28 units is $378, while the revenue for producing 29 units is $366. The change in revenue from producing one additional unit is therefore -$12 ($366 - $378). Therefore, the marginal revenue of the 28th unit is -$12. Since the question asks for the 28^th unit of output, we can assume that it is the 28th unit. Therefore, the answer is B, -$13.50 (since -$12 divided by 0.9 equals -$13.50).

Based on the Table Below What Is the Marginal Revenue