Use the following to answer questions:
-(Table: Demand for Lenny's Coffee) Look at the table Demand for Lenny's Coffee. Lenny's Café is the only source of coffee for hundreds of miles in any direction. If Lenny increases the quantity sold from five cups to six, his marginal revenue will be:
A) $4.
B) $24.
C) -$1.
D) $5.

Question

Use the following to answer questions: 
-(Table: Demand for Lenny's Coffee) Look at the table Demand for Lenny's Coffee. Lenny's Café is the only source of coffee for hundreds of miles in any direction. If Lenny increases the quantity sold from five cups to six, his marginal revenue will be:
A) $4. 
B) $24. 
C) -$1. 
D) $5.

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. If selling five cups brings in $25 and selling six cups brings in $24, the marginal revenue is $24 - $25 = -$1.

Use the Following to Answer Questions