$$\begin{array} { c r }
\text { Output } & \text { Price } \
1 & \$ 30 \
2 & 28 \
3 & 26 \
4 & 24 \
5 & 22
\end{array}$$
-The marginal revenue that would be derived from producing a fifth unit of output is
A)$18.
B)$16.
C)$14.
D)$12.
E)$10.

Question

$$\begin{array} { c r } 
\text { Output } & \text { Price } \
1 & \$ 30 \
2 & 28 \
3 & 26 \
4 & 24 \
5 & 22
\end{array}$$
-The marginal revenue that would be derived from producing a fifth unit of output is
A)$18.
B)$16.
C)$14.
D)$12.
E)$10.

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. The price for 4 units is $24, so total revenue is $96. For 5 units, the price is $22, so total revenue is $110. The marginal revenue is $110 - $96 = $14.

Output Price 1$30228326424522\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 30 \\2 & 28 \\3 & 26 \\4 & 24 \\5 & 22\end{array} Output 12345​ Price $3028262422​

$\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 30 \\2 & 28 \\3 & 26 \\4 & 24 \\5 & 22\end{array}$