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JAMB Economics 1993 Question 21

Question 21

Theory of Costs and Revenue

Output in units; total revenue (N); average revenue (N); marginal revenue (N):
1; 20; 20; ---
2; 38; 19; 18
3; 54; ---; 16
4; 68; ---; ---
5; 80; 16; ---
Determine the marginal revenue if the total revenue is N80.00

  1. A.N12.00
  2. B.N14.00
  3. C.N16.00
  4. D.N18.00
Show the answer and explanation

Answer: A (N12.00)

Explanation

TR rises from N68 (4 units) to N80 (5 units), so MR = 80 − 68 = N12.