What is the marginal revenue of producing the fortieth unit?

$\begin{array} { c c c }
\text { No. Units Produced } & \text { Total Revenue } & \text {Total Costs } \
0 & 0 & 0 \
10 & 120 & 40 \
20 & 200 & 100 \
30 & 270 & 170 \
40 & 310 & 260 \
50 & 330 & 370 \
\end{array}$
A) 4
B) 80
C) 7.75
D) 40

Question

What is the marginal revenue of producing the fortieth unit?

$\begin{array} { c c c } 
 \text { No. Units Produced } & \text { Total Revenue } & \text {Total Costs  } \
 0 & 0 & 0 \
 10 & 120 & 40 \
 20 & 200 & 100 \
 30 & 270 & 170 \
 40 & 310 & 260 \
 50 & 330 & 370 \
\end{array}$
A) 4
B) 80
C) 7.75
D) 40

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. From 30 to 40 units, total revenue increases from 270 to 310, a change of 40. However, the question specifically asks for the marginal revenue of producing the fortieth unit, which means we look at the change from the 39th to the 40th unit. Without data for every single unit, we can't directly calculate this, but the provided options suggest a misunderstanding in the question's intent. Given the options and the typical interpretation of marginal analysis in economics, the closest answer reflecting the average marginal revenue between the 30th and 40th units would be 40 (310 - 270 = 40, over 10 units = 4 per unit, but this is not one of the options). The correct interpretation based on the provided options is not feasible without more specific data per unit, thus leading to a misinterpretation in providing the answer. The intent was to calculate the difference in total revenue between producing 39 and 40 units, but with given data, we calculate the difference between 30 and 40 units, which incorrectly suggests an answer that is not aligned with the options provided.

What Is the Marginal Revenue of Producing the Fortieth Unit