If a local diner can sell 50 burgers per day at a price of $5 each,but must reduce the menu price to $4.95 to sell one more burger,what is the marginal revenue of the 51^st burger?

Question

Quizplus · Accepted Answer

The marginal revenue is equal to the additional revenue from selling one more unit. Selling 50 burgers yields 50 × $5 = $250 per day; selling 51 burgers yields 51 × $4.95 = $252.45 per day. The 51^st burger added $2.45 to revenue.

If a Local Diner Can Sell 50 Burgers Per Day