Refer to the following figure:

-When quantity demanded is 1,000, what is marginal revenue?
A) $15
B) $7.50
C) 0
D) $10
E) -$10

Question

Refer to the following figure:
 
-When quantity demanded is 1,000, what is marginal revenue?
A) $15 
B) $7.50 
C) 0 
D) $10 
E) -$10

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue that results from producing one additional unit of output. In the given figure, the marginal revenue curve intersects the x-axis at a quantity of 500, which means at that point marginal revenue is zero. Beyond that point, the marginal revenue is decreasing and is equal to the slope of the total revenue curve at that point. At a quantity of 1000, the marginal revenue is $10. Therefore, the best choice is D.

Refer to the Following Figure