A firm increases the number of workers it hires from 50 to 52 and,as a result,output increases from 100 to 110.Each of the additional units of output can be sold for $2.What is marginal revenue for the last 10 units produced?

Question

Quizplus · Accepted Answer

The marginal revenue for the last 10 units produced is calculated as the additional revenue generated by those units. Since each unit can be sold for $2, and there are 10 additional units, the total additional revenue is $20. However, since the question asks for the marginal revenue per unit, it remains $2 per unit, which is the price at which each additional unit can be sold.

A Firm Increases the Number of Workers It Hires from 50