$$\begin{array} { c r }
\text { Output } & \text { Price } \
1 & \$ 20 \
2 & 18 \
3 & 16 \
4 & 14 \
5 & 12
\end{array}$$
-The marginal revenue that would be derived from production of the second unit would be
A)$20.
B)$18.
C)$16.
D)$14.
E)$12.

Question

$$\begin{array} { c r } 
\text { Output } & \text { Price } \
1 & \$ 20 \
2 & 18 \
3 & 16 \
4 & 14 \
5 & 12
\end{array}$$
-The marginal revenue that would be derived from production of the second unit would be
A)$20.
B)$18.
C)$16.
D)$14.
E)$12.

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. The first unit sells for $20, and the second unit sells for $18, so the marginal revenue for the second unit is $18 - $20 = $16.

Output Price 1$20218316414512\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 20 \\2 & 18 \\3 & 16 \\4 & 14 \\5 & 12\end{array} Output 12345​ Price $2018161412​

$\begin{array} { c r } \text { Output } & \text { Price } \\1 & \$ 20 \\2 & 18 \\3 & 16 \\4 & 14 \\5 & 12\end{array}$