The following table shows some costs and prices faced by a company that produces submarines.
Table 7.3
-In Table 7.3,at an output rate of 4 submarines per year,marginal revenue is equal to:
A) $30 million.
B) $60 million.
C) $70 million.
D) $240 million.

Question

The following table shows some costs and prices faced by a company that produces submarines.
Table 7.3 
-In Table 7.3,at an output rate of 4 submarines per year,marginal revenue is equal to:
A) $30 million. 
B) $60 million. 
C) $70 million. 
D) $240 million.

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue resulting from a one-unit increase in output. In this case, the output rate increases from 3 to 4 submarines per year, and the corresponding change in total revenue is $60 million. Therefore, the marginal revenue is $60 million.

The Following Table Shows Some Costs and Prices Faced by a Company