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JAMB Economics 1994 Question 22

Question 22

Theory of Costs and Revenue

Price (N); quantity sold:
5; 15
5; 16
5; 17
5; 18
From the table above, marginal revenue is

  1. A.N5
  2. B.N6
  3. C.N8
  4. D.N10
Show the answer and explanation

Answer: A (N5)

Explanation

Each extra unit sells at the same price of N5, so it adds N5 to total revenue: MR = N5.