Refer to the information provided in Figure 13.4 below to answer the questions that follow. Figure 13.4
-Refer to Figure 13.4. The marginal revenue of the eighth pound of burritos is
A) $3.
B) $5.
C) $12.
D) $96.

Question

Refer to the information provided in Figure 13.4 below to answer the questions that follow.  Figure 13.4
-Refer to Figure 13.4. The marginal revenue of the eighth pound of burritos is
A) $3. 
B) $5. 
C) $12. 
D) $96.

Quizplus · Accepted Answer

From the graph, we can see that the marginal revenue of the eighth pound of burritos is $5. Therefore, Option B is the correct answer. As for the best choice, it would depend on the cost of producing each pound of burritos. If the cost is less than $5 per pound, then the producer should continue producing and selling burritos, because each additional unit sold will generate a profit. However, if the cost is higher than $5 per pound, then it may not be profitable to produce any more burritos beyond the eighth pound.

Refer to the Information Provided in Figure 13