If a firm sells 50 units of output at $9 per unit and 60 units of output when price is reduced to $8, its marginal revenue from selling the sixth unit is
A) $10.
B) $480.
C) $450.
D) $30.

Question

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. The total revenue from selling 50 units at $9 is $450, and from selling 60 units at $8 is $480. The change in revenue from selling the additional 10 units is $480 - $450 = $30. Thus, the marginal revenue from selling the sixth unit is $30.

If a Firm Sells 50 Units of Output at $9