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Determine the marginal revenue if the total revenue is 80.00

Economics
JAMB 1993

Determine the marginal revenue if the total revenue is 80.00

  • A. 6.00
  • B. 12.00
  • C. 14.00
  • D. 18.00
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Correct Answer: Option B
Explanation

A company calculates marginal revenue by dividing the change in total revenue by the change in total output quantity. 

changes in total revenue = 80 - 68 = 12

change in output = 1

therefore 12/1 = 12

so when total revenue is 80, the marginal revenue would be 12

outputs in units total revenue in N Average revenue in N marginal revenue in N
1 20 20 20
2 38 19 18
3 54 18 16
4 68 17 14
5 80 16 12

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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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