Table 14-3
The table represents a demand curve faced by a firm in a competitive market.

$$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Quantity Demanded } \
\text { (Units) }
\end{array} & \begin{array} { c }
\text { Total Revenue } \
\text { (Dollars) }
\end{array} \
\hline 13 & 91 \
\hline 15 & 105 \
\hline 17 & 119 \
\hline 19 & 133 \
\hline 21 & 147 \
\hline
\end{array}$$
-Refer to Table 14-3. For this firm, the marginal revenue of the 15th unit is
A)$1.
B)$2.
C)$7.
D)The marginal revenue cannot be determined without knowing the total revenue when 15 units are sold.

Question

Table 14-3
The table represents a demand curve faced by a firm in a competitive market.
​
 $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Total Revenue } \
\text { (Dollars) }
\end{array} \
\hline 13 & 91 \
\hline 15 & 105 \
\hline 17 & 119 \
\hline 19 & 133 \
\hline 21 & 147 \
\hline
\end{array}$$
-Refer to Table 14-3. For this firm, the marginal revenue of the 15th unit is
A)$1.
B)$2.
C)$7.
D)The marginal revenue cannot be determined without knowing the total revenue when 15 units are sold.

Quizplus · Accepted Answer

The marginal revenue of the 15th unit is calculated by the change in total revenue when the quantity demanded increases from 13 to 15 units. From the table, total revenue increases from $91 to $105, which is a change of $14. Since this change is over 2 units (from 13 to 15 units), the marginal revenue per unit is $14 / 2 = $7.

Table 14-3 the Table Represents a Demand Curve Faced by a Firm

Table 14-3
the Table Represents a Demand Curve Faced by a Firm