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WAEC Economics 2003 Question 16

Question 16

Theory of Costs and Revenue

Use the table below to answer question 16.
Output | Total Revenue (N)
1 | 40
2 | 49
3 | 56
4 | 61
5 | 65
The marginal revenue when output is 4 units is

  1. A.5 naira
  2. B.8 naira
  3. C.56 naira
  4. D.61 naira
Show the answer and explanation

Answer: A (5 naira)

Explanation

MR = TR at 4 − TR at 3 = 61 − 56 = N5.