Question

Answer the question on the basis of the accompanying demand schedule. Price Quantity Demanded $7 1 6 2 5 3 4 4 3 5 The marginal revenue obtained from selling the third unit of output is:________A. $6. B. $1. C. $5. D. $3.

Answer 1

Answer:

D. $3.

Explanation:

Use following values to calculate the marginal revenue

Price ____ Quantity Demanded

$7 _______ 1

$6 _______  2

$5 _______  3

$4 _______  4

$3 _______  5

Working

Price ____ Quantity Demanded ___ Total revenue __ Marginal Revenue

 P ___________ Q ________________ P x Q ____ Additional revenue

$7 ____________ 1 _________________ $7 _____ $7

$6 ___________  2 _________________ $12_____ $5

$5 ___________  3 _________________ $15 _____ $3

$4 ___________  4 _________________ $16_____ $1

$3 ___________  5 _________________ $15 _____ -$1