Asked by Shawn Killens on May 17, 2024
Verified
The marginal revenue that would be derived from producing a fourth unit of output is
A) $30
B) $24
C) $21
D) $18
E) $12
Marginal Revenue
The additional income generated from the sale of one more unit of a product or service.
Fourth Unit
In specific contexts, this could refer to the additional unit of a product or service in economic terms, implying the concept of incremental or marginal analysis.
- Determine the marginal revenue and appreciate its role in maximizing earnings for monopolies.
Verified Answer
AC
Aditya ChauhanMay 17, 2024
Final Answer :
E
Explanation :
Marginal revenue is the additional revenue that is gained from selling one more unit of a product. To calculate the marginal revenue of producing the fourth unit, subtract the total revenue of selling 3 units from the total revenue of selling 4 units. The total revenue from selling 3 units is 3×$24=$723 \times \$24 = \$723×$24=$72 , and the total revenue from selling 4 units is 4×$21=$844 \times \$21 = \$844×$21=$84 . The marginal revenue from producing the fourth unit is therefore \$84 - \$72 = \$12.
Learning Objectives
- Determine the marginal revenue and appreciate its role in maximizing earnings for monopolies.
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