The marginal revenue that would be derived from producing a fourth unit of output is

A) $20.
B) $16.
C) $12.
D) $8.
E) $4.

Question

The marginal revenue that would be derived from producing a fourth unit of output isA) $20.B) $16.C) $12.D) $8.E) $4.

Arpit Malviya · Accepted Answer

Final Answer : D, Explanation :   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 × $ 16 = $ 48 3 	imes \$16 = \$48 3 × $16 = $48  , and the total revenue from selling 4 units is   4 × $ 14 = $ 56 4 	imes \$14 = \$56 4 × $14 = $56  . The marginal revenue of the fourth unit is therefore \$56 - \$48 = \$8.

The marginal revenue that would be derived from producing a fourth unit of output is

A) $20.
B) $16.
C) $12.
D) $8.
E) $4.

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