-Use the data in the table above.The marginal revenue for each additional batch of five units of output is
A) $1.
B) $5.
C) $25.
D) $25/Q.
E) unknown.

Question

-Use the data in the table above.The marginal revenue for each additional batch of five units of output is
A) $1. 
B) $5. 
C) $25. 
D) $25/Q. 
E) unknown.

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue divided by the change in quantity. In this case, the change in total revenue is $25 and the change in quantity is 5 units. Therefore, the marginal revenue is $25/5 = $5.

-Use the Data in the Table Above