Question

If the Total Revenue of a firm increases by ₹ 45,000 due to an increase in sale of Good X from 50 units to 65 units, then marginal revenue will be ₹ ............................?

Answer 1

"Marginal revenue is calculated by dividing change in Total revenue by change in quantity sold so we got the equation here=

:- Marginal revenue:- Change in Total revenue/ change in quantity sold

= Change in Total revenue = 45000 (already given in the question)

Now we have to calculate first the change in quantity sold

65 units – 50 units

Change in quantity sold = 15 units

SO now marginal revenue will be 45000/15 = Rs. 3000

"