Question

when sale of unit increased from 20 units to 35 units,the total revenue increased by R.S 1,200.calculate marginal revenue.

Answer 1

MR=ΔTR÷ΔTC

1200÷{35-25}

1200÷5

=240

MR=240

Answer 2

The marginal revenue(MR) is "Rs. 80".

Explanation:

Given,

Total revenue increased ($\delta TR$) = RS. 1,200,

Change ($\delta TC$) = 35 - 20 = 15 units

To find, marginal revenue(MR) = ?

We know that,

Marginal revenue(MR) =$\dfrac{\delta TR}{\delta TC}$

∴ Marginal revenue(MR) = $\dfrac{1200}{15}$

MR = Rs. 80

The marginal revenue(MR) is Rs. 80.