Question

If the revenue of a firm increases by 45000 due to an increase of sale of good x from 50 units to 65 units then marginal revenue will be what?

Answer 1

Answers:The Marginal Revenue = 3000 Rs

The Marginal Revenue:

It is an additional revenue.

It is generated by increasing the sales.

This increase in Sales is taken as increase by ONE unit.

So

Total increase in revenue = 45000 Rs

Increase in sales of good x = 65 - 50 = 15 units

The increase in revenue for 15 units = 45000 rs

The increase in revenue for 1 unit (per unit) = 45000 / 15 Rs = 3000 Rs

So per unit increase in Revenue = 3000

The Marginal Revenue = 3000 Rs

Answer 2

Answer:

Given

• increase in total revenue (∆TR) = Rs 45000
• initial units = 50 units
• final units = 65 units

To Find

• Marginal Revenue

Solution

♦️Marginal Revenue is the additional revenue generated from the sale of an additional unit of output.

we know that marginal revenue is given as

${\underline{ \boxed{ \sf{ \large{MR= \frac{ ∆TR}{ ∆Q}}}}}}$

→∆Q = 65-50

→∆Q = 15 units

$\sf{ \implies \:MR = \frac{45000}{15} } \\ \\ \sf{ \implies \: MR =Rs. \: 3000}$

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