If a firm sells 5 units of output at $10 per unit and 6 units of output when price is reduced to $9, its marginal revenue from selling the sixth unit is
A) $9.
B) $40.
C) $540.
D) $4.

Question

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. Total revenue at 5 units is $50 (5*$10), and at 6 units is $54 (6*$9). The marginal revenue from the sixth unit is $54 - $50 = $4.

If a Firm Sells 5 Units of Output at $10