Question

As output increases from 2100 to 2700 what is marginal revenue

Answer 1

Answer:

4.5

Step-by-step explanation:

The marginal revenue is the increase in revenue when the sales of a product or an output in this case goes up.

The general formula for the marginal revenue (MR) :

MR = ΔTR / ΔQ ; where TR = total revenue & Q = quantity

Now the output here can be either the quantity or the total revenue.

Let price of one item be Rs. 1

Assuming it is the quantity as it is not likely the values are revenue values

MR = ΔTR / ΔQ = 2700*P / 2700-2100 = 2700*1 /600 = 9/2 = 4.5