$$\begin{array} { c c }
\text { Output } & \text { Price } \
\hline 1 & \$ 30 \
2 & \$ 27 \
3 & \$ 24 \
4 & \$ 21 \
5 & \$ 18
\end{array}$$
-The marginal revenue that would be derived from the production of the fifth unit is
A)$24
B)$21
C)$12
D)$6
E)$3

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 the production of the fifth unit is
A)$24
B)$21
C)$12
D)$6
E)$3

Quizplus · Accepted Answer

The marginal revenue is the change in total revenue divided by the change in quantity. In this case, the change in total revenue is $18 - $21 = -$3, and the change in quantity is 5 - 4 = 1. Therefore, the marginal revenue is -$3 / 1 = -$3.

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​​

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