Categories: Economics WAEC

What is the firm’s marginal revenue?

The table below shows the total revenue schedule of a firm. Use the information to answer the question that follows

Output (units) 50 60 70 80 90
Total revenue (TR) $ 85 102 119 136 153

A. $153.00
B. $17.00
C. $1.70
D. $O.80

Correct Answer:

Option C = $1.70

Explanation

Marginal revenue = the change in total revenue divided by the change in total output quantity.

MR = 17/10 = $1.7

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