Question

If the total revenue of a firm increases by rupees 45000 due to an increase in sale of good x from 50 units to 65 units, the marginal revenue will be

Answer 1

Answer: 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