If a local car dealership can sell 8 cars per day at a price of $25,000 each,but must reduce the price to $24,000 to sell one more car,what is the marginal revenue of the 9^th car?

Question

Quizplus · Accepted Answer

The marginal revenue is equal to the additional revenue from selling one more unit. Selling 8 cars yields 8 × $25,000 = $200,000 per day; selling 9 cars yields 9 × $24,000 = $216,000 per day. The ninth car added $16,000 to revenue.

If a Local Car Dealership Can Sell 8 Cars Per