When a firm expands output from 10 to 11 units and total revenue increases from $100 to $110, marginal revenue of the 11th unit is:
A) $110.
B) $11.
C) $10.
D) $210.

Question

Quizplus · Accepted Answer

Marginal revenue is the additional revenue gained by producing one more unit. In this case, the increase in total revenue from producing 10 to 11 units is $10 ($110-$100), so the marginal revenue of the 11th unit is $10.

When a Firm Expands Output from 10 to 11 Units