$$\begin{array} { c c }
\text { Output } & \text { Price } \
\hline 1 & \$ 30 \
2 & \$ 27 \
3 & \$ 24 \
4 & \$ 21 \
5 & \$ 18
\end{array}$$
-The marginal revenue that would be derived from producing a fourth unit of output is
A)$30
B)$24
C)$21
D)$18
E)$12

Question

$$\begin{array} { c c } 
\text { Output } & \text { Price } \
\hline 1 & \$ 30 \
2 & \$ 27 \
3 & \$ 24 \
4 & \$ 21 \
5 & \$ 18
\end{array}$$
-The marginal revenue that would be derived from producing a fourth unit of output is
A)$30
B)$24
C)$21
D)$18
E)$12

Quizplus · Accepted Answer

Marginal revenue is the additional revenue that is gained from selling one more unit of a product. To calculate the marginal revenue of producing the fourth unit, subtract the total revenue of selling 3 units from the total revenue of selling 4 units. The total revenue from selling 3 units is $3 \times \$24 = \$72$, and the total revenue from selling 4 units is $4 \times \$21 = \$84$. The marginal revenue from producing the fourth unit is therefore \$84 - \$72 = \$12.

Output Price 1$302$273$244$215$18\begin{array} { c c } \text { Output } & \text { Price } \\\hline 1 & \$ 30 \\2 & \$ 27 \\3 & \$ 24 \\4 & \$ 21 \\5 & \$ 18\end{array} Output 12345​ Price $30$27$24$21$18​​

$\begin{array} { c c } \text { Output } & \text { Price } \\\hline 1 & \$ 30 \\2 & \$ 27 \\3 & \$ 24 \\4 & \$ 21 \\5 & \$ 18\end{array}$