Table 14-2
The table represents a demand curve faced by a firm in a competitive market.
-Refer to Table 14-2. For this firm, the marginal revenue from selling the 3rd unit is

Question

Table 14-2
The table represents a demand curve faced by a firm in a competitive market. 
-Refer to Table 14-2. For this firm, the marginal revenue from selling the 3rd unit is

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one additional unit. In this case, selling the first two units would generate a total revenue of $24 ($10 + $8 + $6), while selling the first three units would generate a total revenue of $27 ($10 + $8 + $9). Therefore, the marginal revenue from selling the 3rd unit is $3 ($27 - $24).

Table 14-2 The Table Represents a Demand Curve Faced by a Firm