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WAEC Economics 2007 Question 10

Question 10

Theory of Costs and Revenue

Given that TR is total revenue, then TRn − TR(n−1) can be used to find the

  1. A.marginal revenue
  2. B.marginal cost
  3. C.average cost.
  4. D.average revenue.
Show the answer and explanation

Answer: A (marginal revenue)

Explanation

The extra revenue from selling one more unit (the n-th) is marginal revenue.