Use the following to answer questions: Table: Profit Maximization 1
-(Table: Profit Maximization) The table represents the total revenues and total costs of a local sub shop. Based on the table, what is the marginal revenue generated from producing the second sub?
A) $5
B) $10
C) $15
D) $35

Question

Use the following to answer questions: Table: Profit Maximization 1 
-(Table: Profit Maximization) The table represents the total revenues and total costs of a local sub shop. Based on the table, what is the marginal revenue generated from producing the second sub?
A) $5 
B) $10 
C) $15 
D) $35

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. The total revenue from 1 sub is $20, and from 2 subs is $35. The marginal revenue for the second sub is $35 - $20 = $15.

Use the Following to Answer Questions: Table: Profit Maximization 1