As a firm increases its output from nine to ten units, its total revenue grows from $810 to $880 and its total cost grows from $360 to $400. As the firm's output increases from nine to ten units, marginal revenue exceeds marginal cost by:
A) $70.
B) $40.
C) $30.
D) Not enough information to calculate the difference.

Question

Quizplus · Accepted Answer

marginal revenue = $70 ($880 - $810) marginal cost = $40 ($400 - $360)

As a Firm Increases Its Output from Nine to Ten