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The table given below shows the price of the product according to the quantity of the product produced. Quantity Price 5 $156 $157 $15  In the above table, if the quantity sold by the firm rises from 5 to 6, its marginal revenue is$15$75$90$30

Question

The table given below shows the price of the product according to the quantity of the product produced. Quantity Price 5 156156 157 15  Intheabovetable,ifthequantitysoldbythefirmrisesfrom5to6,itsmarginalrevenueis15  In the above table, if the quantity sold by the firm rises from 5 to 6, its marginal revenue is15757590$30

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Solution

The marginal revenue is calculated by the change in total revenue divided by the change in quantity.

In this case, the total revenue when 5 products are sold is 5 * 15=15 = 75. When 6 products are sold, the total revenue is 6 * 15=15 = 90.

So, the change in total revenue is 90−90 - 75 = $15.

The change in quantity is 6 - 5 = 1.

Therefore, the marginal revenue when the quantity sold rises from 5 to 6 is 15/1=15 / 1 = 15.

So, the correct answer is $15.

This problem has been solved

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