Based on the table below what is the marginal revenue of the 28^th unit of output? $\begin{array}{llcc} \underline{\text { Quantity } }& \underline{\text {Price }} \\27&\$28.50\\28&\$27.00\\29&\$25.50\end{array}$

Question

Based on the table below what is the marginal revenue of the 28^th unit of output?

\begin{array}{llcc} \underline{\text { Quantity } }& \underline{\text {Price }} \\27&\$28.50\\28&\$27.00\\29&\$25.50\end{array}

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. The price drops from $28.50 to $27.00, so the marginal revenue for the 28th unit is $27.00 - $28.50 = -$1.50. However, the revenue from selling the 28th unit is $27.00, so the correct calculation is $27.00 - $13.50 (the drop in price for the previous units), resulting in $13.50.

Based on the Table Below What Is the Marginal Revenue Quantity ‾Price ‾27$28.5028$27.0029$25.50\begin{array}{llcc} \underline{\text { Quantity } }& \underline{\text {Price }} \\27&\$28.50\\28&\$27.00\\29&\$25.50\end{array} Quantity ​272829​Price ​$28.50$27.00$25.50​

Based on the Table Below What Is the Marginal Revenue $\begin{array}{llcc} \underline{\text { Quantity } }& \underline{\text {Price }} \\27&\$28.50\\28&\$27.00\\29&\$25.50\end{array}$