A clothing store can sell two shirts for $20 each or three shirts for $18 each.At a quantity of three shirts sold,marginal revenue
A)is $54.
B)is $18.
C)is $20.
D)cannot be determined from the information given.
E)is $14.

Question

Quizplus · Accepted Answer

Marginal revenue is the additional revenue from selling one more unit. Selling two shirts at $20 each gives $40 total, and selling three shirts at $18 each gives $54 total. The marginal revenue for the third shirt is $54 - $40 = $14.

A Clothing Store Can Sell Two Shirts for $20 Each